Turtle opens Status Network vaults to a broader LP distribution

Status Network, the first fully gasless Layer 2, is now included in Turtle’s liquidity program, making Status Network pre-deposit vaults available to Turtle’s network of active capital allocators.

Turtle connects LPs to incentive programs across assets and chains. With more than 400,000 registered wallets, the integration introduces Status Network vaults to a distribution layer of capital allocators who regularly participate in liquidity programs beyond any single ecosystem.

Why native yield governance matters for LPs

Status Network is funded by native yield generated from bridged assets and fees from applications built on the network. That yield accumulates into a shared funding pool, and allocation decisions are governed by Karma, the network’s soulbound governance and reputation token.

For LPs, early participation determines long-term influence over how that yield is deployed. By accumulating Karma, LPs gain governance power over the native yield pool, including the ability to vote on allocating incentives to the applications and liquidity pools where they already provide capital. Governance power is earned through contribution rather than acquisition, aligning liquidity provision with network growth and incentive design.

Gasless execution enables this model.

Because execution is not funded through per-transaction gas fees, participation does not require managing gas balances or funding accounts. Reputation, measured by Karma, determines free transaction throughput instead of gas. This removes onboarding friction and avoids onchain funding trails tied to execution, making ephemeral accounts and private interactions viable without additional setup.

Why Turtle matters

Early liquidity matters not just for TVL, but for who provides it and how they remain engaged over time. Protocols that optimize only for volume often attract short-term capital that exits once incentives fade, leaving fragile markets at launch.

Turtle brings access to an established base of LPs and capital allocators that have historically deployed across ecosystems, vault structures, and incentive programs. This expands the funnel of aligned, experienced liquidity without introducing new protocol dependencies or requiring bespoke integrations.

Turtle does not custody funds or manage liquidity. LPs register by signing a message to verify wallet ownership, with no transaction bytecode involved. Assets are deposited directly into Status Network vaults, with no intermediaries between LPs and the protocol. This preserves direct capital relationships while giving protocols visibility, coordination, and alignment from day one.

What this means for LPs

LPs allocating through Turtle can deposit into Status Network vaults to earn Karma and liquid rewards ahead of mainnet.

Karma cannot be bought or transferred. Early participation compounds Karma and corresponding governance power over the L2 native yield. Deposits unlock at mainnet launch with accrued rewards in SNT and LINEA tokens, and an initial reputation score (denominated in Karma). This creates a clear path from early allocation to ongoing participation in Status Network governance and network incentives.

What comes next

The pre-deposit phase continues through to mainnet, targeted for end of March. Vaults are open for ETH, SNT, LINEA, and GUSD, with GUSD minted by depositing USDC, USDT, or USDS.

Get started

Deposit into Status Network vaults: hub.status.network/pre-deposits

Explore Turtle: app.turtle.xyz

Learn more: docs.status.network

Follow updates: @StatusL2

Join the builders: t.me/StatusL2