Asset0 Managed Service

Asset0 is chain expansion as a service for token asset issuers. LayerZero deploys and manages pre-native token versions across 150+ chains using the Omnichain Fungible Token (OFT) architecture, providing immediate composable liquidity with a seamless upgrade path when issuers enable native minting.

Overview

Asset0 leverages LayerZero's OFT contracts to expand native assets to new blockchains using a repeatable, future-proof architecture. The service acts as a universal liquidity rail with point-to-point interoperability, unlocking distribution at scale with on-demand liquidity.

Once a chain is connected, asset issuers can access pre-native versions of their assets through Asset0. For example, the native asset USDG becomes the pre-native asset for USDG0. Each pre-native token is fully backed 1:1 by the native asset and aligns with issuer standards (such as Circle's Bridged USDC Standard) for contract ownership takeover by the asset issuer. All pre-native asset supply can be redeemed for the native asset on any chain with a native asset deployment.

Architecture

Asset0 uses a two-mesh system that separates issuer-controlled deployments from LayerZero-managed infrastructure:

Native mesh

The asset issuer deploys and controls their standard OFT implementations across selected chains. These are the sanctioned deployments that the issuer directly manages, maintains upgrade authority over, and configures security settings for.

Asset0 mesh

LayerZero deploys and manages corresponding pre-native OFT implementations (e.g., USDG0, PYUSD0, AUSD0) across all supported chains. These contracts are maintained by LayerZero Labs with security configurations, DVN selection, and operational management handled as a service.

Hop composer

The two meshes interoperate through a hop OFT Adapter that enables transfers between native and pre-native versions. Users can deposit native tokens into the adapter, which mints equivalent Asset0 tokens that can then travel across the Asset0 mesh. Conversely, users can redeem Asset0s for native tokens on any chain where native deployments exist.

Security isolation: The only funds at risk are those deposited in the hop OFT Adapter. The pre-native mesh is fully backed 1:1, and all Asset0 supply can be redeemed for native assets. This architecture limits exposure while enabling broad distribution.

How it works

Asset0 is a collection of existing OFT standards working together with a Composer on the Hub Chain to route transfers between Native and Asset0 Chains.

Core Contracts

On Asset0 Chains

OFT Mint & Burn: Implements an OFT with mint and burn capabilities. This architecture enables a point-to-point mesh where spoke chains transfer directly to one another by burning Asset0s at the source and minting them at the destination, without routing through a hub. The contract manages access control (minter/burner roles) for security.

On Hub Chain

OFT Adapter: Uses a Lock/Unlock pattern (Lockbox) to hold native tokens in escrow. This adapter locks assets when sending to the Asset0 mesh and unlocks them when receiving, serving as the bridge between the native and pre-native ecosystems.

Hop Composer: A contract that orchestrates messaging between the Native Mesh and the Asset0 Mesh. It receives composed messages, decodes destinations, and routes packets. It also ensures robustness with permissionless refund (return to source) and retry (re-execute with higher gas) mechanisms for failed transactions.

On Native Chains

OFT Mint & Burn: The standard Mint/Burn pattern deployed by the asset issuer. These contracts are fully controlled by the issuer and interoperate with the Asset0 mesh via the Hub Chain's Composer.

Transfer Flows

Asset0 to Asset0 (Direct)

User sends tokens from Asset0 Chain to another Asset0 Chain

1. Source: Burn tokens and sends LayerZero message
2. Destination: Mint tokens to recipient

All spoke chains are wired point-to-point, enabling direct transfers without routing through the hub.

Native to Asset0 (Routes through Hub)

User sends tokens from a Native to a Asset0 Chain

1. Native: Burn tokens and sends LayerZero message to Hub Chain
2. Hub: OFT Lockbox locks native tokens and triggers compose
3. Hub: Hop Composer routes to the Asset0 chain and sends LayerZero message to Asset0 Chain
4. Asset0: Mint tokens to recipient

Asset0 to Native (Routes through Hub)

User sends tokens from a Asset0 Chain to a Native Chain

1. Asset0: Burn tokens, sends LayerZero message to Hub Chain
2. Hub: OFT Lockbox unlocks native tokens, triggers compose
3. Hub: Hop Composer routes to Native chain and sends LayerZero message to Native Chain
4. Native: Mint tokens to recipient

Value proposition

For asset issuers

Rapid expansion: Deploy to 150+ chains without building and maintaining infrastructure for each chain. LayerZero handles deployment, security configuration, monitoring, and operational maintenance.

Compliance alignment: Pre-native deployments follow established standards for contract ownership transfer, enabling issuers to take over deployments when ready to enable native minting on new chains.

Operational simplicity: No ongoing maintenance required. LayerZero manages bridging, routing, rebalancing, and protocol upgrades automatically.

Brand protection: Pre-native tokens clearly indicate their status (e.g., USDG0) while maintaining association with the native asset. When issuers enable native minting, every Asset0 balance seamlessly upgrades 1:1 to the native asset.

For chain owners

Immediate liquidity: Launch with day-one access to deep, interoperable liquidity across LayerZero's network, already trusted for over $100B in bridge volume. No need for incentive programs or bootstrapping.

Trusted assets: Users interact with familiar, fully-backed stablecoins and RWAs from day one. Pre-native versions maintain full backing and redeemability.

Instant composability: DeFi protocols can immediately build lending markets, DEX pairs, and payment systems using trusted assets. All Asset0s implement the IOFT interface for unified integration.

Eliminates cold-start problem: New chains receive standardized, composable liquidity without waiting for individual asset issuers to deploy. Chains become attractive deployment targets for DeFi protocols from launch.

Benefits

Immediate liquidity

Unlock day-one access to deep, interoperable liquidity across LayerZero's 150+ supported chains. Asset issuers can instantly scale to meet demand anywhere liquidity flows. Chains receive trusted assets that users already know and protocols can immediately integrate.

Future proof

Stablecoins grew from approximately $27B market cap in 2020 to over$250B by mid-2025, representing the fastest-growing asset class in crypto. Asset0 positions both issuers and chains to capture the next wave of tokenized value on efficient, programmable rails.

Instant trusted composability

Access fully-backed stablecoins such as USDG0, PYUSD0, and AUSD0 across issuer-selected chains with zero slippage. Mint, burn, and redeem from the deepest liquidity hubs. DeFi protocols can instantly build on top of these assets, and all transfers use LayerZero's security-first approach with configurable DVN verification.

Operational simplicity

Asset0 handles bridging, routing, rebalancing, and token upgrades automatically. Asset issuers connect once to LayerZero and inherit a fully managed, security-audited liquidity rail with zero ongoing maintenance required. Chain operators receive battle-tested infrastructure without deployment complexity.

Upgrade path

When asset issuers enable native minting on a chain currently served by Asset0:

1. Seamless transition: Every Asset0 balance automatically becomes redeemable 1:1 for the native asset
2. No user action: Holders don't need to swap, bridge, or manually upgrade their tokens
3. Smart contract transition: The issuer can take over the pre-native deployment contract following established standards for ownership transfer
4. Maintained liquidity: All existing integrations continue working through the IOFT interface

This upgrade path ensures that early adopters and DeFi protocols building on pre-native assets face no disruption when issuers expand their native deployment strategy.

Current adopters

USDG0

Backed by native USDG, Paxos' regulated stablecoin backed by the Global Dollar Network (including Robinhood, Kraken, Mastercard, and others). USDG0 is available pre-natively via the Stargate Finance Hydra offering, giving blockchain ecosystems day-one access to compliant USD liquidity.

PYUSD0

Backed by native PayPal USD (PYUSD), a regulated stablecoin issued by Paxos. Bridges Web2 fintech rails with Web3 applications to expand stablecoin utility across payments and DeFi.

AUSD0

Collateralized by U.S. Treasuries, AUSD provides instant stablecoin liquidity and powers Citrea's Bitcoin-based applications with secure, yield-backed collateral.

Chain partners

Asset0 pre-native tokens are available across LayerZero's network of 150+ chains, including major L1s, L2s, and emerging blockchain ecosystems. The service provides chains with immediate access to trusted, composable liquidity without requiring individual negotiations with each asset issuer.

Getting started

For asset issuers

If you're a stablecoin or RWA issuer interested in rapid multi-chain expansion:

1. Contact business development: Email bd@layerzerolabs.org with details about your asset and target chains
2. Technical review: LayerZero team reviews your token architecture and compliance requirements
3. Deployment coordination: LayerZero deploys and configures the Asset0 mesh with appropriate security settings
4. Integration support: Ongoing support for exchange listings, DeFi integrations, and eventual native migration

For chain owners

If you're a blockchain operator seeking deep liquidity assets for your ecosystem:

1. Contact business development: Email bd@layerzerolabs.org with details about your chain and liquidity needs
2. Technical integration: Ensure your chain supports LayerZero Endpoint deployment (EVM, Solana, Aptos, Sui, or other supported VMs)
3. Asset selection: Work with LayerZero to identify which Asset0s best serve your ecosystem
4. Launch coordination: LayerZero handles deployment, security configuration, and integration with the existing Asset0 mesh

For DeFi developers

If you're building on a chain with Asset0 tokens:

1. Review IOFT interface: All Asset0s implement the standard LayerZero token interface
2. Use existing integration patterns: Integrate once, support all LayerZero assets including Asset0s, native OFTs, and Stargate tokens
3. Plan for native transition: Design integrations that continue working when Asset0s upgrade to native

Technical implementation

Asset0 tokens are standard OFT implementations managed by LayerZero Labs. From a technical perspective, they function identically to any other OFT:

• Implement the IOFT interface for transfers
• Support composed messages via lzCompose() for DeFi integration
• Use LayerZero DVNs for verification and Executors for delivery
• Maintain unified supply across all chains through burn/mint mechanics
• Provide fee quoting via quoteSend() for accurate cost estimation

The key difference is operational: LayerZero handles deployment, security configuration, and maintenance rather than the asset issuer.

Security model

Isolation through architecture

The hop OFT Adapter is the only point where native assets are held. This limits exposure to the adapter contract rather than the entire Asset0 mesh. All pre-native supply is backed 1:1 by assets in the adapter.

LayerZero security

All transfers use LayerZero's security infrastructure:

• DVN verification: Multiple independent verifiers confirm message validity
• Executor delivery: Separate delivery mechanism from verification
• Configurable security: LayerZero Labs configures appropriate DVN requirements for each Asset0

Audited infrastructure

Asset0 uses battle-tested OFT contracts that have processed billions in volume. The same contracts power Stargate Hydra and numerous independent OFT deployments across the LayerZero ecosystem.

Comparison with alternatives

Asset0 vs. deploying your own OFT

Aspect	Asset0	Native OFT
Deployment time	Immediate	Weeks to months per chain
Operational overhead	Zero (managed service)	Ongoing monitoring and maintenance
Security configuration	Handled by LayerZero Labs	Issuer selects DVNs and manages config
Upgrade path	Seamless to native	N/A (already native)
Control	LayerZero-managed	Full issuer control
Cost	Service fee	Gas costs only

Asset0 vs. Stargate Hydra

Both use similar OFT architecture for extending liquidity. Stargate Hydra focuses on established deep liquidity assets (USDC, USDT, ETH) managed through StargatePool and StargateOFT contracts. Asset0 focuses on stablecoin and RWA issuers who want their brand represented across chains with a clear path to native deployment ownership.

Related resources

• OFT overview - Understanding the underlying token standard
• Composing overview - Understanding composability
• Stargate Finance - Related managed liquidity service
• OFT technical reference - Deep technical details on OFT mechanics

Contact

For asset issuers and chain operators interested in Asset0:

Email: bd@layerzerolabs.org

Include: Asset details (name, backing, compliance status), target chains, timeline, and any specific requirements.