How Layer3 powers crypto discovery with Turnkey

Learn how the leading crypto discovery platform introduced bespoke wallet experiences with Turnkey that drove growth and user engagement.

• 53.7K+ user wallets created
• 17.3K users onboarded within three months
• 3M+ wallet operations executed since launch

"We chose Turnkey because their flexible infrastructure, security-first ethos, and developer tooling make it easy to deliver innovative wallet experiences to our users." — Yahya Elasmar, Head of Product at Layer3

About

Layer3 is the leading crypto discovery platform connecting crypto users with new protocols and applications based on their onchain behavior and interests. Positioned as the "Google of crypto," Layer3 is pioneering a new era of seamless discovery within the growing onchain ecosystem. 

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Challenge

Leveraging wallet infrastructure to enhance the user experience

After establishing Layer3 as the go-to discovery platform for crypto, the Layer3 team saw an opportunity to further optimize the user experience and drive growth in tandem.

Up until early 2025, Layer3 relied wholly on users having external wallets (EOAs) to interact with their app. While this was common for most crypto platforms, the Layer3 team hypothesized that introducing embedded wallets would unlock opportunities to streamline how users interacted with its core products.

With millions of wallets engaging with dApps surrounding DeFi, trading, and NFTs, the Layer3 team envisioned a future where Layer3 naturally abstracted the most common friction points within crypto. 

Not only would embedded wallets deliver benefits to existing users (in the form of streamlined transaction flows), but they would also drive adoption from newcomers through simplified onboarding.

To execute its vision, Layer3 sought a solution that would deliver the infrastructure needed to deploy embedded wallets to its users at scale. Their ideal solution would meet the following criteria:

• Fully non-custodial: By adopting a fully non-custodial architecture, Layer3 ensures that users maintain complete control over their funds and can access rewards anytime. This approach empowers individuals with direct ownership and security, eliminating reliance on third-party custodians and aligning with the core principles of decentralization and user autonomy.
• Highly flexible: Introducing bespoke onboarding and trading flows would require a solution that offered flexible, low-level primitives.
• Inherently secure: Layer3 knew streamlining the user experience couldn't come at the expense of security. As such, its ideal solution would offer a trustless and verifiable security network.

After an in-depth vetting process, Layer3 chose Turnkey for its emphasis on simplicity, security, and flexible developer tooling. 

"At Layer3, we believe we're the best entry point into the crypto ecosystem. To deliver on that claim, we need to offer a seamless user experience from end to end. Turnkey's wallet infrastructure makes that possible." 

Solution

Seamless onboarding and transaction flows with Turnkey

Turnkey empowered Layer3 to integrate embedded wallets into its discovery platform, streamlining the user experience without compromising security.

Throughout the integration process, Layer3 worked closely with the Turnkey team, conducting extensive beta testing to ensure both onboarding and transaction flows were battle-tested before bringing them to market. 

"Turnkey was great in helping us premortem many things that could have gone wrong during implementation," Yahya shares. "They made sure we were ahead of the curve while helping us avoid any traps that many platforms fall into when launching embedded wallets." 

With Turnkey, Layer3's users can generate non-custodial wallets in seconds using user-friendly authentication methods, such as passkeys or email. By abstracting the need for users to already possess an external wallet to use its platform, Layer3 provided a direct pathway to adoption for crypto newcomers. 

With over 50K embedded wallet deployments within the first three months, Layer3 has strong data to back its hypothesis on driving growth through streamlined onboarding.

Turnkey also proved essential in helping optimize Layer3's transaction flows. Using Turnkey's flexible low-level primitives, Layer3 established a tiered authentication structure that simplifies routine actions while applying higher security flows for sensitive transactions. 

For example, Layer3 users frequently mint CUBEs, onchain credentials to record completion of Layer3 Activations with partner apps and ecosystems. Turnkey enabled Layer3 to implement secure 'Smart Sessions' eliminate constant signing for a streamlined experience that rivals web2 in simplicity.

However, a more sensitive action, such as moving assets off-platform, will always require the user’s explicit approval. This tiered approach ensures that streamlined transaction flows never come at the expense of security.

Most importantly for Yahya, integrating embedded wallets into Layer3's discovery platform was another step in owning more the infrastructure stack while paving the way for expansion into new crypto product categories. 

“One thing we're seeing is users who've adopted the Layer3 wallet are completing more platform actions than those who are purely using their external wallet. This validated our hypothesis that an improved wallet experience leads to more product usage.”

Results

Boosted user engagement, increased adoption, and a foundation for platform growth

Three months and 50K wallets later, Layer3 has transformed its wallet infrastructure into a core driver of streamlined user experiences.

The results since integrating Turnkey?

• 53.7K+ user wallets created
• 17.3K users onboarded within three months
• 3M+ wallet operations executed since launch

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Looking ahead, Layer3 is eager to evolve its native wallet into a standalone product and expand the platform's offerings to include new crypto gaming and trading experiences. They’re confident that Turnkey's wallet infrastructure will play a pivotal role in Layer3's continued growth.

"Turnkey is the foundational infrastructure powering our expansion into new product categories. Not only is it improving the UX within our current product, but it also enables us to broaden our ecosystem with innovative DeFi, trading, and gaming experiences."

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