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    Layer3

    L3

    Evaluation Score

    Overall rating on a scale of 0-10

    RiskReturn
    07.010
    Risk Level:
    High
    Recommendation:Speculative position only
    Evaluated:May 13, 2025 (v2)

    Crypto Token Health Score Explained

    Our AI-powered health score evaluates on-chain metrics, community support, tokenomics, and more. This helps DeFi investors understand risk, compare tokens, and make informed decisions. Learn how to analyze DeFi tokens' risk and use these insights for DeFi portfolio risk management.

    AI Analysis

    Comprehensive evaluation of the token

    Layer3 (L3) Overall Evaluation

    • Development & Security: Strong on-chain and off-chain activity (8/10), multiple audits with timely fixes, robust CI/CD and governance execution (8/10).
    • Community: Active, growing user base across Twitter, Discord, Telegram and Reddit with genuine engagement (8/10).
    • Tokenomics & Use Case: Balanced supply, deflationary fee burn, staking incentives; clear L2 scaling value proposition amid stiff competition (7/10 each).
    • Team & Governance: Major drawback—lack of public profiles, opaque on-chain governance and centralization risk (4/10).

    While Layer3 presents solid technology, security and community traction, team opacity raises execution risk and governance uncertainty.

    Detailed Analysis by Category

    Development Activity

    Code updates and developer engagement

    RiskReturn
    08.010

    Community Support

    Social media presence and community engagement

    RiskReturn
    08.010

    Tokenomics

    Supply, distribution, and utility

    RiskReturn
    07.010

    Market & Use Case

    Value proposition and competitive landscape

    RiskReturn
    07.010

    Team & Governance

    Team background and project governance

    RiskReturn
    04.010

    Security & Audits

    Security history and audit status

    RiskReturn
    08.010

    About Layer3 (L3)

    Layer3 (L3)

    Layer3 is the native ERC-20 token of the Layer3 network, a layer-2 scaling solution on Ethereum. Designed to deliver high throughput, minimal gas fees, and secure cross-chain interoperability, Layer3 empowers decentralized applications and their users with faster, more cost-effective transactions.

    Key Features

    • Scalability: Offloads transactions from Ethereum mainnet to improve throughput.
    • Low Fees: Significantly reduces transaction costs compared to Layer-1.
    • Interoperability: Bridges assets securely between Ethereum and other EVM chains.
    • Security: Leverages zk-Rollup technology to inherit Ethereum’s security model.

    Token Utility

    • Transaction Fees: L3 is used to pay gas fees on the Layer3 network.
    • Governance: Holders can stake L3 to participate in decentralized governance.
    • Incentives: Rewards validators, developers, and community contributors.

    Technical Specifications

    • Standard: ERC-20
    • Network: Ethereum Layer-2 (zk-Rollup)
    • Consensus Mechanism: Zero-knowledge proofs

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