LayerZero Takes Snapshot as Airdrop Draws Closer

• LayerZero had said an airdrop will take place in the “first half of 2024.”

• Snapshots typically act as a precursor to outflows because airdrop farmers often move liquidity to other projects.

• The interoperability protocol's developers indicated that more airdrops are coming.

Cross-chain interoperability protocol LayerZero said a snapshot for its first airdrop was taken on May 1.

The firm announced plans to issue a token in December, saying it would be released “in the first half of 2024.” In a post on X, LayerZero developers referred to the operation as “snapshot #1,” indicating that there will be a series of airdrops.

LayerZero is a protocol that connects various blockchains through technology that removes the need for a third party. It is currently used by Stargate and Radiant Capital, both of which experienced slight gains in their native tokens after the snapshot was confirmed.

Last April, LayerZero raised $120 million at a $3 billion valuation in a Series B round that included investment from Andreessen Horowitz and Sequoia Capital.

Snapshots typically act as a precursor to outflows as airdrop farmers – investors that use protocols to increase airdrop allocations – can then move liquidity to other projects without losing rights to future claims.

There has been a negative $5 million net flow from the Stargate bridge over the past 24 hours, with $43 million being deposited and $48 million being withdrawn, according to DefiLlama.