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LayerZero v2 OFTs logoLayerZero v2 OFTs

The security parameters of each Omnichain Fungible Token must be individually assessed, and can be changed by their developers.

About

This page gathers significant Omnichain Fungible Tokens (OFTs) built on top of LayerZero v2 AMB protocol.


  • Total value locked
  • Destination
    Various
  • Validated by
    Third Party
  • Type
    Token Bridge

  • About

    This page gathers significant Omnichain Fungible Tokens (OFTs) built on top of LayerZero v2 AMB protocol.


    Value Locked
    Detailed description

    This page gathers significant Omnichain Fungible Tokens (OFTs) built on top of LayerZero v2 AMB protocol.

    Risk associated with using any OFT varies, depending on the technological decisions (OApp configuration and security stack) made by the developers. LayerZero as a framework to build omnichain application does not provide any base security as applications can define their own security settings, however applications and tokens choosing the default security settings will leverage security provided by the current default Verifiers and Executor. Default settings are managed by LayerZero team.

    Risk summary
    The security parameters of each Omnichain Fungible Token must be individually assessed, and can be changed by their developers.
    Technology

    Principle of operation

    Omnichain Fungible Tokens (OFTs) are individually configurable Token Bridges. This means that an asset is usually locked or burned at its origin to start the bridging. Then a witness event of this is emitted, verified and relayed to the destination by third verfiiers. Finally, a permissioned Executor submits a transaction at the destination chain to mint the bridged asset.

    The shared feature among all OFTs is the messaging interface, which always uses the LayerZero message protocol (or arbitrary message bridge, AMB). Apart from the OFT standard provided by LayerZero, which extends the ERC-20 standard, implementation details are highly customizable and vary widely.

    Each OFT is a LayerZero OApp and can be configured to use custom security settings when interacting with the AMB. Among these OApp configuration parameters are the DVN(s) (who will read and verify the interchain messages), the executor (who will deliver and execute the transaction on the destination chain), and the minimum block confirmations needed. These can be set by the Oapp / OFT owner or a delegate that they can define in the EndpointV2 contract. Additionally, the OFT owner can often use other admin functions on the OFT contract that are specific to the ERC-20 implementation (similar to other ERC-20 tokens, like arbitrary minting or pausing functions) and not related to LayerZero.

    OFTs can either be natively multichain or they can use an adapter. Native OFTs are burned at their origin and minted at their destination when bridging. Adapter OFTs have a main chain, where they are locked in an adapter escrow. This mints a ‘native’ OFT version of the locked token that can then be bridged on all chains by burn-minting. To receive the original locked token back, a user would have to return to the main chain and unlock it from the adapter escrow.

    • Funds can be stolen if the OApp owner upgrades the OFT(Adapter) contract maliciously.

    1. LayerZero V2 docs: Overview
    2. LayerZero V2 docs: OFT Quickstart

    Configurable Verifiers

    Each crosschain transaction is emitted on the origin chain and must be picked up and verified by preconfigured verifiers (LayerZero calls these DVNs). If they agree on a message, it is considered verified and can be executed by a permissioned Executor at the destination.

    • Users can be censored if the executor or all required verifiers fail to facilitate the transfer.

    • Funds can be stolen if the Executor and the Verifiers collude to submit fraudulent block hash and relay fraudulent transfer.

    • Funds can be stolen if the OApp owner changes the security stack maliciously.

    • Funds can be stolen if there is no custom security stack configured and the LayerZero Multisig changes the default security stack maliciously.

    1. Etherscan: Function setConfig() in SendUln302.sol
    2. L2Beat Blog: Circumventing Layer Zero
    Permissions

    The system uses the following set of permissioned addresses:

    LayerZero Multisig 0xCDa8…4C92

    A Gnosis Safe with 2 / 4 threshold. The owner of EndpointV2, both Uln302 and Treasury. Can register and set default MessageLibraries and change the Treasury address.

    Used in:

    LayerZero Multisig participants (4) 0x9F40…F3270xBb66…19360x73E9…0e1e0x67FC…d5aD

    Those are the participants of the LayerZero Multisig.

    Default LayerZero Executor 0x1732…3059

    Messages passed through the LayerZero AMB are, by default, sent to the destination chain by this Executor. This can be changed by the respective OApp owner.

    Smart contracts
    A diagram of the smart contract architecture
    A diagram of the smart contract architecture

    The system consists of the following smart contracts on the host chain (Ethereum):

    EndpointV2 0x1a44…728c

    The central Endpoint contract for LayerZero v2 on Ethereum. OApps like OFT adapters or token contracts register with this Endpoint to define their send and receive libraries and LayerZero-related configurations.

    SendUln302 0xbB2E…dCe1

    The default send library for the LayerZero EndpointV2. This contract defines a framework and configuration options for sending messages across the LayerZero Arbitrary Message Bridge (AMB). It also accumulates fees configured by the OApp owners via the Treasury contract. New libraries can be added by the LayerZero Multisig.

    ReceiveUln302 0xc02A…24C2

    The default receive library for the LayerZero EndpointV2. This contract defines a framework and configuration options for receiving messages across the LayerZero Arbitrary Message Bridge (AMB). New libraries can be added by the LayerZero Multisig.

    LayerZeroDVN 0x589d…236b

    The LayerZero Verifier delivers their verified messages through this contract. It is one of the default DVNs configured in the LayerZero EndpointV2.

    GoogleCloudDVN 0xD56e…C7cc

    The GoogleCloud Verifier delivers their verified messages through this contract. It is one of the default DVNs configured in the LayerZero EndpointV2.

    Implementation used in:

    The Polyhedra Verifier delivers their verified messages through this contract. It is one of the default DVNs configured in the LayerZero EndpointV2.

    Treasury 0x5ebB…3056

    Manages fees and fee recipients for registered OApps. Fees accumulate in the sendLib and OApp owners can withdraw them.

    Value Locked is calculated based on these smart contracts and tokens:

    Escrow for ENA 0x5853…0133

    OFT adapter escrow for ENA on Ethereum.

    Escrow for CYBER 0xCB07…b052

    OFT adapter escrow 1 for CYBER on Ethereum.

    Escrow for CYBER 0x3d2f…8210

    OFT adapter escrow 2 for CYBER on Ethereum.

    Escrow for TRESTLE 0x17Ce…B91E

    OFT adapter escrow for TRESTLE on Ethereum.

    Escrow for wTIA 0x0ab9…5aA2

    OFT adapter escrow for Trestle Wrapped TIA on Ethereum.

    Escrow for PARAM 0x6182…CA0a

    OFT adapter escrow for PARAM on Ethereum.

    Escrow for WOO 0xAd6c…7711

    OFT adapter escrow for WOO on Ethereum.

    Escrow for MYT 0x3e52…bFA6

    OFT adapter escrow for MYSO Token on Ethereum.

    Escrow for weETH 0xFE7f…7D0D

    OFT adapter escrow for ether.fi wrapped eETH on Ethereum.

    Escrow for sFRAX 0xe479…770E

    OFT adapter escrow for sFRX on Ethereum.

    Escrow for sfrxETH 0x1f55…6E9A

    OFT adapter escrow for sfrxETH on Ethereum.

    Escrow for FXS 0x2343…80d0

    OFT adapter escrow for FraxShares on Ethereum.

    Escrow for PEAS 0x8016…B433

    OFT adapter escrow for Peapods Finance on Ethereum.

    Escrow for USDe 0x5d3a…ef34

    OFT adapter escrow for USDe on Ethereum.

    Escrow for sUSDe 0x211C…E5d2

    OFT adapter escrow for staked USDe on Ethereum.

    Escrow for TBANK 0x1762…74d0

    OFT adapter escrow for TaoBank token on Ethereum.

    Escrow for pxETH 0x1cd5…f208

    OFT adapter escrow for Dinero Staked ETH on Ethereum.

    Escrow for MAVIA 0xE6C2…bD4D

    OFT adapter escrow for MAVIA on Ethereum.

    Escrow for rsETH 0x85d4…8Ef3

    OFT adapter escrow for Kelp DAO rsETH on Ethereum.

    1. LayerZero Docs: OFT Adapter
    2. LayerZero Docs: Deployed contracts and supported chains
    3. LayerZero Docs: DVN addresses
    Knowledge Nuggets