Hundreds of teams are already utilizing LayerZero and its contract standards, yet the potential for groundbreaking omnichain applications and infrastructure remains wide open.

In this post, we’ll explore 11 ideas for the next wave of innovative omnichain products — from building an entirely novel token contract standard to developing a unique DVN or even launching a fully onchain stablecoin.

The goal of this post is to inspire developers to build new omnichain applications, taking the ideas laid out here and extrapolating them into products that far exceed the outlined designs below.

Note: The diagrams are simplified for clarity, omitting certain technical details and exact representations of the infrastructure and applications.

Table of Contents (of Ideas)

1. Omnichain Accounts
2. Omnichain Governance Platform
3. Intents Bridge
4. OFT Launchpad
5. OFT DEX
6. Stablecoin Yield Aggregator
7. OmniFlatcoin
8. Bell Curve OFTs
9. LZ_Yield
10. Client Diverse DVN
11. Restaking Executor

Refresher: LayerZero for Beginners

To understand these 11 products, it’s helpful to first understand LayerZero.

Here’s a brief overview for anyone who needs it. For more technical details, please refer to our documentation. If you are already aware of how the protocol works, please skip this section!

LayerZero is an omnichain interoperability protocol that can be used to build universal blockchain infrastructure and applications.

It connects 90+ blockchains with a proven, configurable security model that has never experienced an exploit. As a result, LayerZero has become the most widely adopted interoperability protocol, with hundreds of applications and tokens facilitating the delivery of over 130 million messages.

Onchain, LayerZero provides three contract standards that developers can use to quickly build products:

• Omnichain Application (OApp): A universal smart contract interface for sending and receiving data between contracts on different blockchains.
• Omnichain Fungible Token (OFT): A type of OApp that is an extension of the ERC20 token standard and allows fungible tokens to be transferred across multiple blockchains without asset wrapping or intermediaries.
• Omnichain Non-Fungible Token (ONFT): A type of OApp that is an extension of the ERC721 token standard and allows non-fungible tokens to be transferred across multiple blockchains.

Offchain, anyone can permissionlessly run the necessary infrastructure to verify and execute messages sent by applications built on LayerZero.

• Decentralized Verifier Networks (DVNs): A type of validator that verifies messages sent through LayerZero protocol using many different types of attestation schemes.
• Executors: The Executor executes transactions on the destination chain and provides gas abstraction which allows applications to pay for all gas fees in a single payment on the source chain.

With that, let’s get into it.Below are 11 Big Ideas to Build Omnichain — neatly summarized and diagrammed to inspire the next wave of developers!.

Idea #1: OAccounts

Externally Owned Accounts (EOAs) are the standard account type in crypto, consisting of simple public/private key pairs that allow users to send, receive, and hold assets. However, EOAs lack programmability, resulting in a static user experience.

The limitation of EOAs has led to a shift towards programmable accounts, known as smart accounts. The main idea of smart accounts is splitting the signing key from the account, allowing any cryptographic signing scheme, whether that is MPC, Multisig, or an EOA. Additionally, by nature of the account being a smart contract, any programmable logic can be embedded directly into the account, which means dynamic operations like batching signatures, gas abstraction via paymasters, seedless onboarding, social recovery, etc. is feasible.

Despite the many benefits of smart accounts, there’s a significant drawback: a separate smart contract must be deployed on every chain a user interacts with. In our omnichain world, this means users have to manage accounts across many chains each with its own address. This is not only cumbersome for the user, but it is a security defect as it may lead to signer compatibility issues.

This hindrance has certainly affected SCA adoption. Currently, there are in total around 16M smart accounts across EVM chains, but the number of active accounts is likely lower. For comparison, Metamask (an EOA) reported having 30M active users in January 2024. Thus, there is a clear disparity between the number of active users who use EOAs vs. SCAs.

However, an accelerated transition to SCAs can be made with the right product. The solution is a unified, omnichain account standard that synchronizes state and reliably manages account keys and modules across all the chains the user operates on. The user will have a single address linked to multiple accounts, but the experience will feel like one unified account that works seamlessly across the 90+ EVM and non-EVM chains connected by LayerZero.

By using LayerZero, the omnichain account can address the two main challenges that smart accounts face today:

• State Sync: When a key or module change happens on one chain (“hub chain), all accounts linked to it that exist on other chains will be automatically updated so the signer and account is consistent.
• Balance Abstraction: Users should have a single, unified balance that reflects all their assets across different chains. They should be able to use their total balance regardless of which chain they are transacting on, and without needing to hold the chain’s native token to pay for gas fees.

Omnichain Ideation

In regards to state synchronization, the developer will likely end up using LayerZero to handle state synchronization, and select a chain (or deploy a dedicated app-specific blockchain) that only manages the user’s keystore contract, which handles all things related to key creation, rotation, recovery, spending rules, etc. In this architecture, the keystore would live on one “hub” chain, and changes made to the keystore are reflected automatically in all the supporting smart wallets on the “spoke” chains.

Since LayerZero messaging can synchronize and update account states across chains, all account balances can be unified — balance abstraction is possible! This means users can transact on one chain even if they don’t have the full balance there. As long as their unified balance across all chains is sufficient to fulfill the transaction, the necessary funds can be bridged and used for the transaction, all in one click through a LayerZero compose message and a liquidity bridge like Stargate.

There are two add-ons to the smart account which can improve the user experience: intents and paymasters.

An intent framework can be used to accelerate cross-chain transactions, particularly when the user doesn’t have enough funds on the chain they want to transact on. In this setup, a solver fulfills a user’s intent on the destination chain, and the transaction is then settled back on the source chain using a LayerZero message.

Furthermore, gas abstraction could be handled by a paymaster that is deployed on each chain. The paymaster is a fully onchain contract that can either sponsor a user’s gas fees or allow gas fee payments in any token. If a transaction takes place on an application that configures a paymaster, the token used to pay for the gas fee is exchanged for the native gas token.

With the increasing number of blockchain networks, a unified omnichain account standard is essential for delivering the convenience, efficiency, and security users need, and LayerZero is uniquely positioned to support its development.

Idea #2: Omnichain Governance Platform

The omnichain governance platform allows token holders for DAOs and other protocols to vote from any chain even if their tokens live across multiple chains. Also, once a governance decision has been reached, an automatic executable governance action can be sent out to contracts on all the chains where the protocol is hosted.

To achieve this, the right solution should adhere to these key principles:

• Immutable: Governance messages should use immutable smart contracts to avoid exploits that would disrupt the voting process. LayerZero has immutable endpoints on over 90 chains, enabling secure voting from any of them.
• Censorship-Resistant: Messages must be immune to tampering. LayerZero’s structure ensures that no third party can censor or alter governance messages, preserving the integrity of the voting process. For example, a DAO’s major decision should reflect the collective will of its voters — completely free from interference.
• Sovereignty: LayerZero enables sovereignty by allowing OApps to run their own DVN within their configuration, alongside other DVNs.
• Verifiable: On-chain voting allows results to be verified against the “source of truth” contract on the hub chain. This can be accomplished via LayerZero’s ABA message design pattern.

Omnichain Ideation

With these principles in mind, the implementation of omnichain governance is straightforward:

1. A user sends a voting message from any of the 90+ chains supported by LayerZero to the protocol’s governance hub chain.
2. The vote contract calculates the holders aggregated voting power across all chains (via ABA message) so they can vote from one chain no matter where their governance tokens live.
3. The vote is transmitted through the censorship-resistant LayerZero protocol.
4. All votes are delivered to a hub voting contract, which calculates the final outcome of all the votes.
5. Once the outcome is determined, the hub voting contract can automatically trigger actions in the DAO’s protocol on other chains, which would require a message to be sent from the hub chain to all of the spoke chains.

This governance solution can be entirely built on LayerZero by a governance infrastructure platform or even individual applications.In the end, the final solution in utilizing LayerZero offers an immutable, censorship-resistant, and verifiable way to manage omnichain governance.

Idea #3: Intents Bridge

Unlike traditional transactions that specify exact actions and payments, intents are more flexible. They allow users to specify desired outcomes (e.g., “I want X and am willing to pay up to Y”), enabling more expressive and potentially faster cross-chain bridging.There are three main problems that intent protocols experience today:

• Centralized Settlement: Intent bridges rely on centralized settlement infrastructure. This setup cannot reliably ensure that intent solvers can redeem their collateral, even if the chain suffers from reorgs or downtimes.
• Unscalable Standards: Intent standards like ERC-7683 are only applicable for EVM chains, limiting the volume potential that an intent bridge could have.
• Inventory Mismanagement: Solvers have difficulty managing liquidity across all of their chains. This is a centralizing force whereby only the entities with the technical expertise, infrastructure, and liquidity can compete for order flow at scale.

An intents bridge on LayerZero could address these issues by settling an intents transaction and managing the inventory via the LayerZero protocol, as well as developing a unified intents standard that works on both EVM and non-EVM chains.

Omnichain Ideation

The intents bridge architecture consists of two key components:

1. Solver Network: The solver network runs an auction to determine which solver can fulfill the user’s request. Once a solver is selected, it fills the user’s order on the destination chain, provides proof of the fill, and redeems the user’s funds from escrow.
2. Messaging Protocol: LayerZero handles the messaging for the OFT bridging transaction. This eliminates the reliance on centralized intent protocols and removes the need for the solver to post collateral or rebalance funds back to the source chain.

How this works is that a user signs an intent transaction request. The user’s funds burned on the source chain and delivered directly to an escrow contract on the destination chain. As soon as the transaction is requested, a solver fills the order on the destination chain (quicker than the burn/mint LayerZero message), and then provides proof to the protocol that it successfully filled the order. In the end, the user receives their funds on the destination chain more quickly, and the solver redeems its collateral without needing to rebalance back on the source chain.

Furthermore, this omnichain solution optimizes the three aforementioned problems:

• Censorship-Resistant Settlement: Every intent message would be settled in a censorship-resistant manner via immutable endpoints in the LayerZero architecture. This allows solvers to securely and quickly redeem the user’s collateral on the source chain, without relying on any centralized middlemen to solely control the process.
• Scalable Standard: A generalized standard based on the ERC-7683 standard would extend the compatibility to non-EVM chains. This would open up the competitive landscape for solvers — further decentralizing the solving landscape. Since LayerZero supports 84 chains, including both EVM and non-EVM, there are 6,972 potential pathways for solvers to compete for orderflow which is far more than any other intent protocol in existence.
• Inventory Management: LayerZero’s infrastructure enables solvers to quickly transfer funds between chains. For OFT tokens, the simple burn/mint method is used, so users only pay the price of gas on the source and destination chain. Since LayerZero is used to bridge the OFT to the destination, and the solver fills on that destination chain, there is no need for the solver to rebalance funds via bridging back to the source chain.

Undoubtedly, the top benefits of using LayerZero for an intents system is security. Intents are inherently dependent on off-chain actors, so the on-chain components of intent frameworks must be optimized for robust security that is verifiable onchain; otherwise, the off-chain actors will find a way to exploit the system. LayerZero messaging has never experienced an exploit, and its security stack — consisting of DVNs and executors — is fully modular, allowing it to be configured to meet the specific needs of intent protocols, balancing cost and security.

Additionally, adoption is another key reason to develop this protocol on LayerZero. Over 130 OFTs are deployed, including some of the biggest names in crypto, like WBTC, USDe, and weETH. With the intents protocol, these OFTs can be transferred across 94 EVM and non-EVM chains in a quicker manner.

In conclusion, an intent-based solution can provide advantages in speed and cost, especially for smaller transaction sizes. Since most retail user’s transactions fall into this category, a fast and censorship-resistant omnichain intents protocol is a valuable product in the industry.

Idea #4: OFT Launchpad

Launching tokens on a single blockchain limits adoption and usage, as they’re confined to that chain’s users and applications. A better approach is using a composable standard with unified supply across multiple chains which can unlock greater potential for volume and usage in omnichain DeFi. Think omnchain pump.fun.

Omnichain Ideation

The OFT Launchpad allows tokens to be launched across multiple blockchains simultaneously. Building this on LayerZero is particularly advantageous for token issuers, as it supports over 90 EVM and non-EVM chains and functions as a mesh network of pathways across all of these networks. This means a token could be launched on 5, 25, 50, or even all 90 chains at once.

The launchpad provides two methods of distribution for projects: airdrops, which distribute tokens to eligible participants based on their previous activities, and fundraising, where users can exchange tokens (like USDC) for the protocol’s token on any chains the protocol chooses.

LayerZero’s ZRO token launch was the first omnichain token launch. Eligible users could claim their tokens from Ethereum, Arbitrum, Optimism, Base, Polygon, BNB Chain, and Avalanche. Whenever a participant acted to claim their tokens, a LayerZero message was sent to the coordination chain to ensure a “source of truth.” This granted the claimant their allocated share of tokens on any of the chains.

The exception was when users claimed from the coordination chain — Arbitrum, in the case of ZRO — processes claims automatically without a LayerZero message.

Once the OFT is live, it can be transferred natively among all these chains while maintaining its unified supply. This seamless cross-chain functionality showcases the power and flexibility of LayerZero’s omnichain technology, making it a game-changer for token distribution and management in an omnichain world.

Idea #5: OFT DEX

Existing decentralized exchanges (DEXs) face two main limitations. DEXs operating on a single chain lack access to multichain liquidity, forcing traders and liquidity providers to manually bridge assets across ecosystems, which adds latency and fees. On the other hand, DEXs operating on multiple chains fragment liquidity, reducing capital efficiency as liquidity is spread across different environments instead of being concentrated in one.

A DEX built on a middlechain using OFTs addresses these issues by concentrating liquidity in pools that are accessible from any chain. OFTs play a unique role in the DEX through its usage of a burn-and-mint mechanism, which maintains a uniform global supply across chains. As a result of this architecture, liquidity providers can deposit into one concentrated pool, while traders can execute trades directly from their native chain, without the need to bridge tokens first.

The key benefits of an OFT-based DEX are:

1. Atomicity: Operating on a single chain ensures trades fully succeed or fail, with LayerZero ensuring all steps are coordinated across chains to prevent partial trades.
2. Unified Liquidity with cross-chain access: Concentrated liquidity in OFT pools on the middlechain with deposits from LPs’ from any blockchain, provides deeper liquidity, better pricing, and reduced slippage.
3. Cross-chain Trading: A LayerZero compose message lets users trade across chains without needing a separate bridging transaction beforehand. This eliminates delays, inefficiencies, and cognitive load, enabling smooth, one-click cross-chain trading.

Omnichain Ideation

In the OFT DEX, the flow of assets is straightforward and efficient for both swappers and liquidity providers. Swappers from any supported chain can initiate trades by sending an OFT to the middlechain’s liquidity pool. The OFT DEX executes the trade in this single pool, and the swapped OFTs are returned to the user’s original chain without the need for manual bridging.

For liquidity providers, the process is equally simple. They deposit liquidity into the centralized pool on the middlechain, and their assets are made available for trades across all connected chains. This allows liquidity providers to maximize capital efficiency by participating in a deep liquidity pool that services users from multiple chains, generating higher returns and providing a more efficient market — all while benefiting from the security and atomicity provided by LayerZero’s cross-chain architecture.

Here’s how it works for both traders and liquidity providers:

Traders

1. Initiate Trade: The trader initiates a swap from their native chain (e.g., Ethereum) via the OFT DEX.
2. Cross-Chain Messaging: LayerZero handles the swap request, sending it to the middlechain’s liquidity pool without needing manual bridging.
3. Swap Execution: The trade is executed atomically on the middlechain, ensuring success or full rollback.
4. Receive Tokens: The swapped tokens are sent back to the trader’s wallet on the destination chain.

Liquidity providers

1. Deposit Liquidity: LPs provide liquidity to the centralized pool on the middlechain, servicing multiple chains.
2. Earn Fees: LPs earn fees from trades across chains, benefiting from consolidated liquidity.
3. Withdraw Liquidity: LPs can withdraw their liquidity and earned fees anytime, either on the middlechain or their native chain.

The OFT DEX can offer an unparalleled experience to DeFi users. With widespread adoption of the OFT standard by tokens operating across 90+ chains, it’s clear that it is time for an OFT DEX to exist and transform the DEX landscape.

Idea #6: Stablecoin Yield Aggregator

The stablecoin market is surging, with a market cap exceeding $170 billion and 31 stablecoins boasting over $50 million market cap.

However, optimizing yield farming returns with stablecoins is challenging due to the sheer number of pools that are scattered across many different blockchains. Currently, there are over 1,000 yield-bearing pools with at least $100,000 in total value locked (TVL), and each one having a unique risk and return profile.

The vast number of stablecoins and yield-bearing pools makes it difficult for users to manage and maximize their investments efficiently. Additionally, moving funds between chains and rebalancing across platforms adds further complexity.

The omnichain stablecoin yield aggregator offers a powerful solution.

Omnichain Ideation

The stablecoin yield aggregator streamlines the traditional user experience constraints by automatically discovering, pledging funds, and rebalancing across the best (according to the user’s risk profile) yield sources. With one-click deposit of the stablecoin, the yield aggregator can discover the best opportunities to earn yield.

LayerZero is essential to making this possible. It can access any stablecoin yield-bearing pool across 90+ chains, the most among competing interoperability providers. Additionally, LayerZero enables users to pledge their stablecoins in various ways: either 1:1 or split across multiple pools — all in one click using a batch send.

Here’s how it works:

1. Identify: The aggregator scans across multiple chains to identify the best yield opportunities for stablecoins.
2. Rebalancing: It automatically rebalances the funds across the most profitable pools, ensuring that users get the best returns with minimal effort.
3. Bridging: By seamlessly coordinating transactions across chains, the aggregator removes the complexity of cross-chain transactions for the end-user.

An enhancement to this aggregator could be to provide a LP receipt token of the deposited stablecoin — increasing capital efficiency if the token is composable with other DeFi protocols.

In summary, by simplifying the yield farming process, this solution appeals to both novice and experienced users, enabling them to take advantage of the best opportunities without the hassle of manual liquidity management.

Idea #7: OmniFlatcoin

Stablecoins are the most-adopted crypto product in existence, however they come with significant risks. USDC and USDT account for 151B+ in total supply, yet both are highly reliant on a single centralized identity to hold $USD and mint an equivalent amount onchain. This gives both of these entities substantial political influence and is a regulatory risk for holders, especially given that USDC is managed by a U.S.-based entity and is backed by USD reserves. Such dependence on a single fiat currency and its associated regulatory environment exposes users to potential disruptions and limitations imposed by legacy financial systems.

A flatcoin offers a new approach to creating a stable form of money in the crypto economy. Unlike traditional stablecoins that peg to fiat currencies like the USD, a flatcoin optimizes for “price flatness” where the price is not dependent on offchain custody or issuance, but where it is determined automatically by onchain economics.

Flatcoins could be created by tracking the cost CPI, like Frax’s FPI, but this still has reliance on an offchain oracle to relay the pricing data, which cannot always be relied upon to deliver accurate data. Instead, the flatcoin can derive its stability from the splitting of an OFT into a stable and volatile OFT.

Omnichain Ideation

Diagram is derived from Spot Protocol

Building a flatcoin on LayerZero involves creating a decentralized, algorithmic system that maintains its value purely through on-chain supply and demand dynamics rather than relying on off-chain fiat currency backing. The system uses two types of tokens: a Stable OFT, which remains pegged to a fixed price, and a volatile OFT.

The Stable OFT maintains its peg by adjusting supply — minting tokens when users buy and burning them when users sell. Users holding the Stable OFT will have a dynamic balance in their accounts based on these changes in supply. Additionally, the protocol could incorporate a PID controller, similar to what RAI uses, to help maintain price stability.

While the Stable OFT provides, well, stability, the volatile OFT provides speculative opportunities for those further out on the risk curve. Importantly, the combined supply of the volatile OFT and Stable OFT will always equal the original OFT supply, ensuring a balanced system. This system provides opportunities for all types of user profiles, while still allowing users to swap in and out of the stable and volatile OFTs at any time.

This model leverages LayerZero to make the flatcoin composable across DeFi applications on multiple blockchains, enabling seamless integration within the crypto economy. By offering a decentralized, inflation-resistant, and stable form of money, a flatcoin built on LayerZero addresses the limitations of traditional stablecoins and could become a foundational product in crypto.

Idea #8: Bell Curve OFTs

LayerZero’s OFT standard is versatile and suitable for many use cases. However, there’s significant room for experimentation to enhance OFTs, making them more powerful and tailored to specific needs.

This opens the door to developing OFTs positioned on opposite ends of the bell curve.

Omnichain Ideation

Extreme DeFi OFT

The DeFi OFT represents the extreme decentralized finance side of the spectrum. This token is designed to be decentralized via DAO governance votes. Once the token issuer deploys the OFT on any LayerZero-supported chain, the DAO will vote on which chains it should expand to. The governance vote can be fully onchain (see Omnichain Governance section), and the execution of the voting outcome can also be delivered onchain, without censorship. This setup makes the DeFi OFT akin to a Bitcoin-like token, where its adoption and value grow organically through community narratives and support, while being democratically controlled by teh DAO.

The DAO could also set any number of DVNs, configurable on a per-pathway and per-volume basis. For example, an OFT transfer between two chains that historically experience block reorganizations may require 10 consensus from DVNs, while an OFT transfer of minimal, say $10, would only require signoff from 2 DVNs.

Additionally, DeFi users love yield, so imagine that the DeFi OFT includes an embedded array of data which corresponds to the history of those who have held the token. This is the ColorTrace solution that LayerZero Labs solved to address the colored coin problem; “this allows for protocols to reward participants fairly for any value accretive action.” Using colotrace in the OFT would allow DeFi protocols who integrate the token to reward holders of the token with yield in an equitable and verifiable way.

With all of that said, there is only one question left to be addressed, “Who will be the Satoshi behind the Extreme DeFi OFT?”

Extreme Compliance OFT

On the other end of the spectrum is the Extreme Compliant OFT which is designed to meet strict regulatory requirements.

Offchain, this token would use compliant DVNs that would check a message payload against the OFAC sanctions list. If a transaction involves an address on the sanctions list, it would be blocked and reverted.

Onchain, the OFT would implement rate limiting to prevent an overflow of transactions from being settled before the necessary checks and balances are conducted. Furthermore, if the OFT provider wanted their whitelisted and blacklisted addresses to be verifiable, they could embed this directly in the OFT contract. In this way, the extreme compliance OFT inherits all risk management at either the contract or verification level.

Idea #9: LZ_Yield

Bridges that rely on non-OFT mechanisms and employ a lock-mint design (e.g. assets locked in a pool on one chain and minted on another) miss out on capital efficiency for the locked assets.

This is potentially a missed opportunity for both users and bridge operators as there is yield that can be earned on those idle assets.

Omnichain Ideation

With LZ_Yield, instead of simply locking a token on one chain, it is automatically locked in a yield-bearing pool. The token is still minted on the destination chain with 1:1 backing by the locked asset on the source chain, but now it earns yield on the locked assets. When the user bridges back to the source chain, the token is unlocked, and the user receives both the principal amount and the earned yield.

While there are complexities in determining exactly how and to whom the yield is distributed, this solution in general improves upon existing lock and mint bridges in DeFi.

Idea #10: Client Diverse DVN

LayerZero allows applications to send data from chain A to chain B. The source chain (chain A) data is verified by Decentralized Verifier Networks (DVNs) so that packets of data can be delivered to the destination chain (chain B). What’s unique to LayerZero’s security model is that building a DVNs is permissionless and the combination or selection of DVNs is completely configurable by applications.

There are currently 35 DVNs, yet there are opportunities for other parties to create DVNs using new cryptographic methods that could be more secure, faster, cheaper, or a combination of all three.

Omnichain Ideation

Some of the most interesting DVNs are those pushing the boundaries of technical innovation that deliver low latency optimizations and extremely secure verification methods.

For example, an ultra-low latency DVN could focus entirely on minimizing the time needed to verify messages. By building it entirely in Rust or C++, it would not only be optimized for performance but also security, offering client diversity compared to existing DVNs. This would be similar to what Firedancer is to Solana: the low-latency DVN will be to LayerZero.

Leveraging a language with minimal overhead (no runtime garbage collector), and offering greater control over system resources can significantly enhance overall performance. Furthermore, parallel processing and transaction batching allow multiple messages to be signed simultaneously which would cut down verification time. These optimizations give the low-latency DVN a clear advantage where real-time performance is essential.

Idea #11: Restaking Executor

One key piece of offchain infrastructure that enhances the efficiency of messages sent through LayerZero is the executor. The executor has two main functions:

• Message Invocation: The executor triggers the lzReceive function in the Endpoint contract on the destination chain, allowing the OApp to receive the message.
• Gas Abstraction: The executor simplifies gas payments for omnichain transactions by enabling users to pay for both packet emission and delivery using the source chain’s gas token.

There’s a lot of room for experimentation with the executor infrastructure. For example, applications can either run their own executors or enhance the security model with a general-purpose executor, which can be offered as a service to other applications for their cross-chain messages. One such idea is the Restaking Executor.

Omnichain Ideation

Before the advent of restaking protocols like Eigenlayer and Symbiotic, it was difficult to apply cryptoeconomic security to an executor in a secure and straightforward manner. Now, executors can be economically secured by users’ staked assets. Whenever a node operator of the AVS acts maliciously — attesting to an invalid execution or failing to attest to a valid execution — they will be slashed. On the other hand, when a node operator acts according to the rules of the AVS, they will receive yield.

One thing to highlight is that in order to ensure that the executor cannot act maliciously, it must also put up a significant percentage of stake — disincentivizing it to incorrectly execute messages.

For example, using Eigenlayer, the process would work as follows:

1. User Staking: Users stake ETH or LSTs in the Executor AVS to cryptoeconomically secure the network.
2. Message Delivery: The endpoints on the sending and receiving chains deliver a message to the endpoint on Ethereum.
3. Result Comparison: The Ethereum Endpoint sends both results to the Executor AVS, which compares the state root (i.e. onchain footprint of the executor’s action) from each chain.
4. Correct Execution: If the validators attest to the execution of the message by the executor, a portion of the yield generated from the OApp is distributed as an incentive to both operators and stakers.
5. Incorrect Execution: If the message is incorrectly executed, the staked assets are slashed. To ensure alignment with stakers and operators, it’s ideal for the executor to have a significant amount of stake at risk.

Conclusion

If you’ve made it this far, we hope this post either gave you an idea or inspired you to build something truly novel. With all of that said, there’s just one question left: What will you build omnichain?

If you didn’t know, LayerZero Foundation recently launched lzCatalyst: a program dedicated to connecting talented builders with excellent venture capital firms in crypto. Partners of this program, which include a16z crypto, Delphi Ventures, Lightspeed, and more, have the option to invest up to $300M to support the development of novel omnichain applications built on LayerZero.I nterested teams can apply here: https://t.co/Ku3PrdSWnN