Layer3 Raises $15 Million to Help Users Discover Web3 Projects

Layer3 raised $15 million in a Series A funding round to support its omnichain identity and distribution protocol that helps cryptocurrency consumers discover and earn rewards from projects.

The company also reported that it raised a previously unannounced $3.7 million round in 2022 and a $2.5 million round in 2021. Altogether, Layer3 has raised $21.2 million, the firm said in a Friday (June 14) press release.

“Layer3’s omnichain identity and distribution protocol creates an unrivaled flywheel effect, where crypto consumers discover new projects, and projects reward their on-chain activity,” the company said in the release. “By aggregating user activity across multiple chains and dApps, Layer3 generates a unified view of a user’s on-chain identity and enables highly targeted, efficient distribution of tokens.”

With these capabilities, Layer3 helps crypto protocols attract the attention of users, which is often monopolized by tech giants; get their product in front of users; and deliver tokens to those users to reward them for their engagement, according to the release.

Projects building on Layer3 can route tokens to users based on criteria like temporal triggers, asset ownership, on-chain activity, credentials, social graph and quest engagement — ensuring that the tokens go to the right users at the right time, the release said.

The company’s distribution infrastructure is used by more than 100 crypto teams, has served more than 3 million unique users in 120 countries, and supports 25 different blockchains, per the release.

Layer3’s latest funding round was co-led by ParaFi and Greenfield Capital.

“Layer3 is poised to revolutionize on-chain value distribution by addressing critical challenges for both users and leading Web3 projects,” Claude Donzé, principal at Greenfield Capital, said in the release. “For users, Layer3 offers a trusted, guided exploration of Web3 by rewarding them for meaningful engagement. For networks, protocols and dApps, Layer3 provides a powerful solution to attract and retain the right users through targeted token distribution.”

In another development in the Web3 space, Ripple and Archax said Wednesday (June 13) that they extended their existing collaboration to bring tokenized real-world assets (RWAs) onto the XRP Ledger (XRPL) over the coming year.

In May, MoonPay launched Web3 Tools, a platform for “building mainstream-ready digital experiences” that expands on the firm’s payments and minting infrastructure to offer services such as authentication, identity verification, advanced token-gating, ticketing and insights.