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Today, Blockdaemon is proud to announce a strategic partnership with LayerZero Labs. This collaboration unites LayerZero Labs’ expertise in omnichain interoperability with Blockdaemon's strength in blockchain infrastructure, self-custody wallets, and node management. This joint effort aims to enhance institutional access to Decentralized Finance (DeFi).
This partnership brings together two leading entities in blockchain technology, each contributing unique capabilities.
The LayerZero protocol enables seamless communication between different blockchain networks. This capability is vital for interoperability in the blockchain ecosystem. LayerZero's technology facilitates secure, efficient, and reliable transactions across various chains. It plays a crucial role in broadening the scope and effectiveness of Decentralized Finance (DeFi). By allowing diverse blockchain networks to interact securely, LayerZero enhances the potential for innovation and expansion in the DeFi space.
Blockdaemon ensures secure and efficient blockchain infrastructure for leading businesses. Notably, Blockdaemon's node-as-a-service platform will join the LayerZero protocol as a Decentralized Verifier Network (DVN) to verify cross-chain messages.
Together, deepening this partnership promises to deliver a more accessible, secure, and efficient DeFi ecosystem for institutional players.
The partnership between LayerZero Labs and Blockdaemon introduces several key features, each designed to benefit institutional engagement in Decentralized Finance (DeFi).
1. Development of Blockdaemon’s Gasless Oracle: Blockdaemon contributes to verifying and securing the messages sent through the LayerZero protocol by participating as a DVN with a gasless oracle. This oracle is a DVN option for application owners to select from within their Security Stack.
The DVN, integral to LayerZero's framework, allows diverse participants, including major tech entities, to operate as oracles, or “verifiers”. These oracles verify the authenticity of data across blockchains. Blockdaemon, as a verifier, ensures the accuracy and security of information exchanged between chains.
By running a DVN, Blockdaemon further decentralizes the diversity and depth of validation methodologies offered to developers integrating LayerZero. It underscores Blockdaemon's commitment to the advancement of Web3 interoperability.
2. Integration of LayerZero into Blockdaemon's MPC-based Wallet: Another significant aspect of the partnership is the integration of LayerZero into Blockdaemon's Multi-Party Computation (MPC) based Wallet. This integration brings a new level of security and control to DeFi transactions. Blockdaemon's MPC-based, self-custodial Wallet, known for its ability to be fully deployed on-premise or in the cloud, and its robust security protocols, provides a secure environment for digital asset management. By integrating the LayerZero protocol into this wallet, institutional investors can not only control and stake their assets, but also manage them across these chains, Ethereum, Avalanche, Polygon, Fantom and Optimism, with utmost security and efficiency.
"At the heart of Blockdaemon’s mission is a commitment to provide an easy and secure way for institutions to leverage the power of blockchains and expand applications on the network," stated Konstantin Richter, CEO and Founder of Blockdaemon. "The integration of both Blockdaemon’s Wallet with LayerZero and DVN (Blockdaemon Oracle) holds the promise of establishing a secure, compliant, and hyper-scalable entry point to liquidity pools while ensuring institutions retain complete control over their assets.”
3. Enhanced Access to DeFi for Institutional Organizations: The partnership primarily focuses on improving institutional access to DeFi. By combining LayerZero's industry-leading cross-chain functionality with Blockdaemon's secure infrastructure, the collaboration opens up new possibilities for institutional investors. Institutions now have access to a more diverse range of DeFi applications, along with the assurance of secure and efficient operations.
“LayerZero Labs aims to develop cross-chain infrastructure and interoperability technology that is built to last: always immutable, permissionless, and censorship-resistant,” commented Ryan Zarick, CTO and Co-Founder of LayerZero Labs. “Blockdaemon’s integration of the LayerZero protocol into their industry-leading MPC wallet and participation as a DVN within LayerZero demonstrates the enterprise-grade utility of the LayerZero protocol and expands the number of DVNs that developers can choose to leverage within their Security Stack.”
These features collectively signify a potential leap forward in making DeFi more accessible, secure, and efficient for institutional users, underlining the strength of this partnership in the blockchain ecosystem.
Both LayerZero Labs and Blockdaemon are working closely to include other prominent organizations in the blockchain and financial sectors. By involving additional tier-one organizations, LayerZero Labs and Blockdaemon aim to create a broader, more robust ecosystem.
This partnership also aims to establish highly trusted entry points for institutional customers into the DeFi space. These rails will prioritize security, compliance, and operational efficiency – all key concerns for institutional participants. By providing trusted and reliable entry points, LayerZero and Blockdaemon will play a pivotal role in easing institutional entry into DeFi, thus potentially encouraging greater participation. These entry points are aimed at becoming cornerstones for institutions looking to explore and leverage the benefits of decentralized finance, bridging the gap for traditional finance.
LayerZero's innovative cross-chain protocol, combined with Blockdaemon's robust blockchain infrastructure and node management, creates a powerful platform for institutions. This platform will enhance the accessibility, security, and efficiency of DeFi for institutions.
The partnership between LayerZero Labs and Blockdaemon demonstrates a commitment to innovation and a vision for a more integrated, secure, and efficient future in decentralized finance. As LayerZero and Blockdaemon continue to evolve and expand their offerings, they are set to play a crucial role in shaping the future of DeFi, paving the way for its wider acceptance and integration into the global financial ecosystem.