Layer3 secured $15 million in Series A funding round co-led by ParaFi and Greenfield Capital. The round saw participation from Electric Capital, King River, Immutable, Lattice, Tioga, LeadBlock Bitpanda Ventures, Amber, Stateless, and GD1.
The company also raised a previously unannounced strategic round of $3.7M from Electric, Lattice, ThirdPrime, ParaFi, and Sandeep Nailwal in 2022, and a $2.5M round in 2021, bringing total funds raised to $21.2M.
Layer3 solves the dual problem of attention and distribution in crypto: attention, the currency of the internet, is monopolized by centralized tech behemoths who profit at the expense of users; meanwhile, the crypto protocols challenging this system face a major distribution hurdle with getting their product in front of users and rewarding those users with tokens.
Layer3’s omnichain identity and distribution protocol creates an unrivaled flywheel effect, where crypto consumers discover new projects and projects reward their onchain activity. By aggregating user activity across multiple chains and dApps, Layer3 is generating a unified view of a user’s onchain identity and enables highly targeted, efficient distribution of tokens. Projects building on Layer3 can programmatically route tokens to the right users at the right time based on a variety of criteria like temporal triggers, asset ownership, onchain activity, CUBEs, Social graph and Quest engagement.
Uniswap, Base, Arbitrum, Linea, Polygon, Gnosis, Celo, and more than a hundred other crypto teams are using Layer3’s distribution infrastructure. The platform has served over 3 million unique users in 120 countries to date and Layer3’s distribution protocol supports 25 different blockchains across the EVM and Solana ecosystem.
“We believe everything will have a token, and there will be myriad ways for users to earn them,” says Layer3 co-founder Brandon Kumar. “Tokens make it exponentially easier for projects to reach and retain users and reward engagement. But so far in crypto, tokens have been inefficient and costly for the projects that launch them.”
Layer3 co-founder Dariya Khojasteh explains further: “Layer3 is the catalyst for a new era of user-owned value. In crypto, attention is action, and we aim to decentralize this new attention economy by making it 10-100x easier to reach users. Our vision unlocks the same market that created trillion-dollar internet behemoths in a network where the value generated from attention and engagement accrues directly to the users.”
Layer3 makes tokens much more efficient.
Layer3’s interface is tailored to provide users with an engaging experience. For each project undertaken, users earn a CUBE (Credential to Unify Blockchain Events), which serves as a record of their activity across various fragmented chains via public key. CUBEs can be considered as on-chain session data owned by the user. More than 10 million CUBEs have been minted on Layer3 in just the four months since its launch.
The Layer3 Foundation will launch the L3 token, along with a new AI-enabled protocol for optimizing distribution strategies, later this year.
