At this point, LayerZero has introduced a token called DAM, an Omnichain Fungible Token (OFT), on Stargate Finance. DAM makes it easy to move in and out of BNB Chain into Ethereum as 1:1 with zap fees or slippage by using the liquidity Stargate. This disrupts most conventional transaction models, such as those of BNB Smart Chain having pay per transfer costs, as this will implement zero fee structure.
LayerZero plots itself as a giant across chains. The zero-fee structure is a great feature rejoiced by the users. Others have doubts on its long term sustainability. Stargate has some money to make. The solutions can entail LayerZero or Stargate subsidies. It is possible to redistribute the fees to liquidity providers. Layered fee schedules are possible to emerge. To the community, there are both excitement and apprehension in the comments. DAM is a break in omnichain finance. It is a zero-fee model which innovates transfer of tokens. It will survive in the long term thanks to strategic decisions.
OFT Standard Takes Off
The OFT standard of LayerZero starts to become popular with projects, stablecoins, and tokens such as HOME and SKATE. It will enable cross-chain transfer in a convenient way without wrapping and additional liquidity pools. That enhances liquidity, lessens friction and makes LayerZero a focus point of omnichains.The recent release of DAM, an Omnichain Fungible Token (OFT) by LayerZero, on Stargate Finance is a major step forward in cross chain interoperability. DAM will allow high throughput between BNB Chain and Ethereum with 1:1 transfers with zero fees and slippage using the liquidity protocol of Stargate.
Zero-Fee Model raises questions
DAM has appeal to its users but there is a concern of sustainability because it can operate without charging fees. There is excitement and skepticism by the community. Not only does this method increase liquidity and accessibility but also represents LayerZero as a principal figure in cross-chain friction reduction. DAM can be considered a massive breakthrough in omnichain finance. LayerZero created DAM, an Omnichain Fungible Token (OFT). It runs on Stargate Finance. DAM also allows 1:1 transfers on BNB and Ethereum. Transfers are done at no cost and no slippage. Stargate liquidity protocol helps to conduct such transactions. DAM competes with regular fees of the BNB Smart Chain. OFT standard installed by LayerZero is appealing to several projects. JThis helps to enhance liquidity and decrease frictions of transactions.
