TL;DR:
LayerBank is addressing the challenge of fragmented liquidity across different chains by unifying liquidity pools, which will lower borrowing APRs, increase flexibility, and offer higher yields for users. The upcoming Cross-Chain Lending feature will allow users to borrow across multiple chains, creating a seamless and more efficient borrowing experience.
The platform will also enable Leverage Looping Vaults to maximize staking APYs, and Isolated Lending Pools for quick, permissionless listings for meme tokens, adding deeper liquidity and new margin trading opportunities.
LayerBank Roadmap 1: Cross-Chain Lending (~Q1 2025)
Since our platform launch in July, LayerBank has onboarded 700,000 users across more than eight multi-chain networks, secured $900M in Total Value Locked (TVL), and built a strong brand presence—all without an official governance token.
That said, it is evident that LayerBank isn’t just another lending protocol; we’re redefining decentralized money markets. Our roadmap is meticulously crafted to provide innovative solutions that drive long-term value to unresolved user challenges in the DeFi industry. And as we approach our next milestone with the launch of the $ULAB token, we’d like to share a glimpse of what to expect on Layerbank in the next few months.
LayerBank remains focused on two core principles:
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User-oriented
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Decentralized money market
As an industry disruptor, Layerbank’s evolution and growth are directed at addressing user pain points in decentralized lending platforms with new features and seamless experiences.
Tackling Fragmented Liquidity
A significant challenge within DeFi is fragmented liquidity across various networks. This fragmentation leads to a disjointed user experience, complicating access to substantial liquidity pools and driving up borrowing APRs.
LayerBank’s solution is to unify liquidity across multiple chains, allowing users to access and leverage liquidity without barriers. This approach translates to lower borrowing APRs, increased flexibility, and higher yields for our users.
Beyond Multi-Chain: Enter Cross-Chain Lending
A fundamental factor for money markets to succeed, particularly in borrowing, is maintaining low APRs. Currently, many decentralized money markets experience low liquidity, causing APRs to fluctuate rapidly with even small borrowings. While this may not pose a challenge for small-scale retail investors, it often deters larger institutional investors, who view these fluctuations as a significant risk. Consequently, this can lead to reduced platform revenue and diminished governance token value.
By implementing a cross-chain solution, LayerBank aims to enhance the user experience for all investors by treating liquidity as a unified pool across chains. This initiative will facilitate larger liquidity pools and lower borrowing APRs, creating a more stable borrowing environment.
How Cross-Chain Lending Works
Consider this scenario: you have $1,000 in ETH on Scroll, but need liquidity on Linea. LayerBank allows you to use your Scroll ETH as collateral to borrow $500 in ETH on Linea.
Alternatively, if you hold $1 million in ETH on Mode, where borrowing rates exceed 6%, you may find that even a small borrowing amount can further elevate the APR. In this case, LayerBank provides access to other money markets across chains, enabling you to borrow from Linea at a 3% APR and bridge the funds back to Mode.
For institutional users seeking to borrow $20 million, LayerBank allows borrowing from multiple chains—20% from Scroll, 30% from Linea, and so forth—creating an efficient borrowing environment with lower overall APRs.
Initially, this cross-chain functionality will launch on select chains and tokens, with additional cross-chain pools expanding over time.
What Does This Mean for You?
→ Higher Yields, More Opportunities
As borrowing demand increases, supply APRs will rise, creating a positive feedback loop that enhances liquidity and fosters a more favorable borrowing environment.
Moreover, TVL across supported chains will grow, as borrowing and lending needs will no longer be chain-specific but will apply across LayerBank’s cross-chain markets. This evolution strengthens our ecosystem and enhances our ability to secure more enticing user incentives.
Leverage Looping Vaults
LayerBank will also enhance staking APYs by allowing users to loop across cross-chain money markets. Rather than looping a single asset on one chain, users can leverage lower APR assets on one chain while gaining exposure to higher APR opportunities on another. All of this will be available through an intuitive, user-friendly interface in line with our user-centric approach.
More Opportunities Ahead
→ Isolated Lending Markets
LayerBank will collaborate with meme token projects and communities to offer quick and permissionless listing. This will create deeper liquidity and provide users with margin trading opportunities while creating additional protocol revenue streams.
For example, if a meme token launches on Chain A, we can collaborate to list a pool of Token A and ETH/USDT on that chain, with triple incentives. These pools can also scale into major markets, increasing liquidity through multiple incentive layers.
Everything will be permissionless—from pooling and listing to upvoting and incentivizing—governed by the $ULAB DAO, directly adding value to the platform.
Looking Ahead
Following the $ULAB launch, our focus will be on rolling out innovative features that our users need the most. And our vision remains clear: to become the leading decentralized money market across all networks.
Stay tuned for our next chapter, where we will delve deeper into the utility of $ULAB. Thank you for being an integral part of LayerBank’s journey!
About LayerBank
LayerBank is a lending protocol designed to serve as the liquidity hub for all EVM rollups, offering a universal, permissionless banking solution across the OmniChain ecosystem.