LayerZero Labs reposted this
The Cold Start Problem in Digital Assets & Crypto When I was younger my dad would joke about "cranking the engine" on cold days before we left the house to go to school. That's because back the day cars would have a literal crank to warm up the engine (see pic). This same challenge rings true today with new chains being launched and, rather than it being an issue of triggering internal combustion, it is an issue of injecting liquidity. Blockchains need liquidity secured before, during, and after go-live to ensure capital and trading activity are catalyzed immediately. A few weeks ago, Plasma (the Tether backed chain) launched and attracted $10B in 24 Hours to become a top 5 chain by TVL. How? Through LayerZero Labs rails. Deposits were secured on other chains ahead of launch (USDT0, USDe, weETH, and plus others that run on LZ), allowing for instant cross-chain transfers. Through a discrete ecosystem strategy, assets were immediately placed into protocols on Plasma to facilitate stickiness and drive utility from day 1. With new chains spinning up weekly, it's clear that LayerZero is again setting the standard for onchain liquidity and utility. That's the LayerZero effect.