Tensions in DeFi industry exposed by LayerZero’s anti-Sybil strategy

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LayerZero faces airdrop controversy as some users lose out thanks to its anti-Sybil strategy.

LayerZero, a cross-chain interoperability protocol, is gearing up for its first token airdrop, but its strategy against token farmers is causing division.Sybil activity occurs when a group or individual creates multiple wallets to interact with a protocol in the hopes of qualifying for its airdrop multiple times.

This is despite the fact that LayerZero prominently features Merkly on its own webpage as part of the LayerZero “ecosystem” of applications. Despite the unwanted “Sybil farming” designation, CC2 went on to say that Merkly usage should not automatically disqualify airdrop hunters — only “excessive usage” should do so.

LayerZero’s Sybil hunt may also resonate positively in the wider industry and, most importantly, with those who hold the purse strings. Merkly is listed as part of the LayerZero ecosystem despite being named a “Sybil farming application.” Source: LayerZeroLayerZero’s struggles to identify Sybil farms without alienating significant portions of its community highlight an ongoing tension between protocols and users.

“You need a third-party service to kind of give you that assurance. And in the ad world, that was the ad server, which was a third-party entity in the transaction. And in this case, for identity, you need either Civic or any other kind of identity protocol,” said Capilnean.

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