Reward Farming Protocol Runs Special Campaign

Layer3, a reward protocol for activities and milestones, now offers special prizes for Arbitrum users. The Layer3 campaign will run for four more weeks, offering daily point rewards for completing engagement with various apps in the ecosystem.

In May, Layer3 was among the best tokenless protocols, with more than 5K accounts engaging. It lost the top spot only to EigenLayer and its point reward systems. Layer3 is also among the top Arbitrum apps, with increased volumes in recent weeks.

The spike in Layer3 users coincides with the CUBEs program, where users own a CUBE asset and compete for additional airdrops and a prize pool.

Layer3 Among Top 10 Arbitrum Apps

Layer3 lined up as the sixth most widely used app on Arbitrum, surpassed only by essential infrastructure projects. Layer3 has 6.3K users on Arbitrum, but with a significant impact on transaction count.

The weight of Layer3 is the new technology for tracking user tasks across different protocols. Layer3 is now popularizing its CUBE ownership program, which ties the special NFT to all user activities across multiple chains.

A CUBE, or a Credential to Unify Blockchain Events, is a fully owned NFT that tracks a user’s experience across protocols. CUBE ownership is needed to be eligible for special rewards and fulfill regular challenges. Additional hype for Layer3 arrived after the latest experimental airdrop.

For now, CUBEs are the main asset of Layer3, which started out as a tokenless protocol. This summer, Layer3 also prepared to launch a native $L3 token, which will be traded and reflect the value of rewards.

CUBEs are traded in ETH, depending on rarity. Each CUBE NFT will grant a different level of reward. The CUBEs may gain popularity to secure more L3 tokens once the project decides on the exact airdrop date. To secure more L3 during the airdrop, CUBE owners must keep an activity streak. Quests may be completed with as little as $0.01, or through staking and unstaking tokens. For some quests, zero fees may apply.

Arbitrum Expands to 12.7% of Layer3 Claims

Layer3’s primary goal is to generate Claims based on CUBE ownership. After adding Arbitrum, the chain became responsible for 12.7% of calls. To generate rewards, CUBE owners must engage with some of the decentralized financial apps on Arbitrum.

Volumes may continue to expand in the coming weeks as both Layer3 and Arbitrum fans move in to claim their rewards.

Arbitrum remains a growth network, while Layer3 has been more active on Base, Linea and ZKSync Era, its first chains for claims and quests.

On Arbitrum, Quests has generated more than 6.8M transactions. The impact of Layer 3 depends on currently available quests and tasks, and more growth is expected during special campaigns.

Over time, over 11M claims have been handled on all blockchains, most of which coincide with the activities of separate users. Over 75% of CUBEs have been distributed to small owners with one cube in their wallet.

More than 1M wallets have a single CUBE, with fewer than 50K wallets holding multiple cubes. Most quests require small-scale activities, such as small trades or staking a handful of liquidity.

Arbitrum Draws In Experimental Apps

Arbitrum is a leading L2 blockchain for 2024, enabling stablecoins and key elements of a decentralized ecosystem like DEX and yield protocols.

One of the biggest activity sources is the collection of “other” apps joining the network. Smaller apps have increased their volume on Arbitrum by 727%, and may be incubating the next major player on the network. Arbitrum also saw peak activity in MEV bots, coinciding with demand for DEX trading.

New and returning users surged on the Arbitrum network in May, and efforts are underway to sustain that momentum. Most users abandon Arbitrum after a month or two, but about 20% remain loyal even after a year.

Cryptopolitan reporting by Hristina Vasileva