Should You Issue an OFT?
Before deploying your own OFT, consider whether you actually need to:| Scenario | Recommendation |
|---|---|
| You need to transfer USDC or ETH | Use Stargate - assets already exist |
| You want to integrate existing OFTs (USDT0, USDe, WBTC) | Just integrate them - see OFT Ecosystem |
| You’re issuing a new token that needs to be crosschain | Yes, deploy an OFT |
| You have an existing token that needs crosschain support | Yes, use OFT LockUnlock (or BurnMint if token has mint/burn) |
Check if the asset is already an OFT. If so (Stargate assets, USDT0, USDe), you can integrate directly without deploying your own.
How OFTs Work
When tokens move between chains, they are removed from circulation on the source chain and added to circulation on the destination chain. This keeps the global token supply constant regardless of which chains hold balances.
- Source chain: Tokens are removed from circulation
- LayerZero message: Transfer details are sent crosschain via DVNs
- Destination chain: Equivalent tokens are added to circulation for the recipient
Transfer Mechanisms: BurnMint vs LockUnlock
There are two ways to remove tokens from circulation and add them back:| Mechanism | Remove from Circulation | Add to Circulation | Constraint |
|---|---|---|---|
| BurnMint | Tokens are burned (destroyed) | Tokens are minted (created) | None - deploy on any number of chains |
| LockUnlock | Tokens are locked in escrow | Tokens are released from escrow | Only ONE lockbox per mesh |
Why BurnMint is Preferred
With BurnMint, tokens are destroyed on the source chain and created on the destination:- No stored value risk: No pool of tokens in escrow that could be targeted
- Unlimited scalability: Deploy to any number of chains without constraints
- Simple supply accounting: Total supply = sum of all chain balances
When LockUnlock is Required
LockUnlock is necessary when you have an existing token without mint/burn capabilities. Instead of destroying tokens, they’re held in an escrow (the “lockbox”). On the destination, OFT tokens are minted that represent claims on the locked tokens.The Single Lockbox Rule
Why? The lockbox must contain enough tokens to satisfy all possible redemptions. Consider what happens with multiple lockboxes:- Lockbox A on Ethereum holds 1M tokens
- Lockbox B on Arbitrum holds 500K tokens
- Users on other chains hold 1.5M OFT tokens total
- Messages are successfully sent requesting redemption
- The lockbox doesn’t have sufficient supply to fulfill them
- Transactions revert, leaving users with tokens they can’t redeem
Advanced: Multiple lockboxes are possible with additional mechanisms. Stargate Pools use a credit-based rebalancing mechanism that limits maximum transfers per pathway, preventing runs on any single pool. However, this adds significant complexity to your deployment and requires careful liquidity management. For most use cases, a single lockbox with BurnMint on other chains is the recommended approach.
Deployment Process
Wire OFTs Together
Connect your deployments using LayerZero DevTools so they recognize each other as peers.
Configure Security
Set up DVNs and Executors for your pathways.
Platform Guides
EVM
Ethereum, Arbitrum, Base, and 100+ EVM chains.
Solana
SPL tokens with the Anchor framework.
Sui
Move language on Sui.
IOTA
Move language on IOTA L1.
Aptos
Move language on Aptos.
Hyperliquid
Dual HyperEVM/HyperCore architecture.
Advanced Topics
Native Gas Transfers
Send native gas tokens crosschain.
ONFT (NFTs)
Omnichain Non-Fungible Tokens for crosschain NFT transfers.
Composed Transfers
Bundle token transfers with swaps, deposits, or other actions.
Crosschain Vaults
Manage OFT liquidity across chains with OVault.
Common Questions
How many chains can I deploy to?
How many chains can I deploy to?
LayerZero supports 150+ chains. You can deploy your OFT to any combination of supported chains. Start with a few and expand as needed.
Can I add chains later?
Can I add chains later?
Yes. Deploy your OFT to the new chain, run
lz:oapp:wire to connect it, and your existing deployments don’t need any changes.What's the cost to deploy?
What's the cost to deploy?
Deployment costs vary by chain (gas fees). Crosschain transfers cost LayerZero messaging fees (DVN + Executor fees), typically 1 depending on the pathway.
How do I handle different decimal places?
How do I handle different decimal places?
OFT uses “shared decimals” (default: 6) for crosschain transfers. The contracts handle conversion automatically. See the OFT Technical Reference for details.
Is my token compatible with Stargate?
Is my token compatible with Stargate?
Yes. OFTs implement the standard OFT interface, which is compatible with Stargate’s bridge UI at stargate.finance.
