Daily activities on LayerZero hit a record low in the past year.

Daily activities on LayerZero have significantly decreased after LayerZero announced the snapshot, from 348,682 transactions on 01/05 to only around 47,000 transactions on 28/05 - the lowest decrease level in the past year.

After the snapshot announcement, daily operations on LayerZero decreased to a record low level.

The cross-chain LayerZero project has seen the number of interactive messages on daily protocols drop to the lowest level in over a year.

The amount of interaction messages with daily protocols on LayerZero has significantly decreased from 348,682 on 01/05 to below 48,000 at the time of writing, reflecting a nearly 7-fold decline in user activity after the LayerZero snapshot announcement.

Daily message volume statistics on LayerZero protocols. Source: LayerZero Scan

Recently, Stargate Finance, a multi-chain bridge solution supported by LayerZero, announced the deployment of the V2 upgrade on 25/05. However, Stargate's TVL has not seen significant growth, currently standing at only 350 million USD. ""

TVL of Stargate Finance. Source: DefiLlama (29/05/2024)

The recent decline in trading activity on LayerZero indicates a shift in user behavior with the protocol. The decrease is primarily due to a significant reduction in transaction spamming by bots that were farming airdrops, which occurred after the project announced the snapshot. This decrease in interaction also partly reflects the actual user demand for the LayerZero protocol.

The sybil problem is a major concern as we have witnessed a decline in the activity of LayerZero. Therefore, it is crucial for LayerZero to seriously address this sybil issue in order to protect fairness for users when there are only about 600,000 truly valid wallets out of a total of 6 million wallets.

Previously on 04/05, LayerZero allowed wallet addresses with sybil behavior to voluntarily declare to retain 10% of the airdropped tokens they may receive. This campaign quickly attracted over 800,000 self-declared addresses within two weeks of deployment.

After that, LayerZero continues to implement phase 2 of the "sybil hunting" campaign, allowing other users to report fraud cases to receive 10% of the corresponding token amount. However, due to the excessive amount of spam, the project has to temporarily suspend the campaign for a while.

Currently, the sybil hunting campaign has been restarted from May 28th to May 30th, requiring participants to deposit 0.5 ETH to minimize spam. It is worth noting that in this round, all reports on sybil wallets will be personally inspected by CEO Bryan Pellegrino and the direct team, demonstrating the project's determination to eliminate the sybil problem. 空白

The second campaign seems to have avoided the spam and attracted enthusiastic participation from "sybil hunters". There are even accounts reporting up to 480 thousand sybil-related wallets and receiving many controversial opinions about the criteria for filtering sybil of this account.

Fun fact: when 104 wallets accused of being sybil because the domain of over 100 wallet addresses all started with "ruslan", making sybil behavior identification clear. Even CEO Bryan has mentioned "Ruslan" in one of his tweets.

Cluster wallet accused of sybil by ruslan domain. " "

Stage 2 of the campaign will end on 30/05 and the community is eagerly awaiting to see how many wallet addresses will meet the criteria to receive the airdrop from the project.

The wallets considered as sybil on LayerZero might play an important role in the upcoming airdrop of zkSync, as both zkSync and LayerZero are partners of Nansen. And this platform will use data from LayerZero to enhance the AI's sybil detection capability for future airdrops.

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