Stargate Finance: The Future of Omnichains

Stargate is a cross-chain bridge solution that enables quick, easy, and seamless cross-chain trading between multiple blockchains and the first decentralized application (dApp) built on LayerZero.

 

Key Takeaways

  • The goal of Stargate is to simplify cross-chain liquidity transfer into a straightforward, one-time transaction. Any asset on any chain can be switched with just one click.

  • The STG token reimburses liquidity providers for funding Stargate Protocol activities.

  • The main utility of the Stargate Finance protocol is providing investors the opportunity to transfer assets at a 1:1 ratio across blockchains.

  • Stargate automates cross-chain inventory management and provides on-demand access to liquid inventory, eliminating the need for dApps to finance or maintain emissions to encourage LPs across numerous chains.



Introduction

On 19 August 2022, Stargate Finance (STG) price doubled in a single day after Binance announced to list STG in the Innovation Zone - a dedicated trading zone where users can trade new, innovative tokens that are likely to be more volatile and risky than other tokens.


Not only did STG price see some action, but the total value locked (TVL) of STG has also increased by more than 60%. TVL refers to the amount of user funds deposited in a DeFi protocol by staking, liquidity pools, or lending.


What is Stargate Finance (STG)

Stargate is a cross-chain bridge solution that enables quick, easy, and seamless cross-chain trading between multiple blockchains and the first decentralized application (dApp) built on LayerZero. It is an essential component of Omnichain DeFi because of its fully customizable liquidity transmission system.


The STG coin, which is based on Ethereum, drives the Stargate Finance ecosystem. Along with locking and receiving the Stargate Protocol governance token, the STG token reimburses liquidity providers for funding Stargate Protocol activities.


The goal of Stargate is to simplify cross-chain liquidity transfer into a straightforward, one-time transaction. Thanks to Stargate, any asset on any chain can be switched with just one click.


STG Utilities

The main utility of the Stargate Finance protocol is providing investors the opportunity to transfer assets at a 1:1 ratio across blockchains.


For example, investors using Stargate Finance can swap Tether (USDT) on the Ethereum blockchain for the exact value of USDC on the Solana blockchain.


"With Stargate, users & dApps can transfer native assets cross-chain while accessing the protocol's unified liquidity pools with instantly guaranteed finality. The universe is infinite with Stargate." - Stargate Finance

The solution to Bridging Trilemma

The Stargate bridge is the first to solve the bridging trilemma. Existing bridges such as Avalanche Bridge and Portal Token Bridge must make compromises on the following fundamental bridge features:


Instant Guaranteed Finality - Users and programs can be sure that a transaction they successfully commit on the source chain will appear on the destination chain.


Native Assets - Instead of wrapped assets, which demand additional swaps and incur additional costs to acquire the necessary object, users and applications swap in native assets.


Unified Liquidity - By allowing multiple chains to share access to a single pool of liquidity, users and applications that depend on the bridge's dependability can access more liquidity.


A governance and staking token

Stargate Finance created its token to broaden its user offerings. In addition to swaps, the platform provides liquidity pools and farming. Pools allow providers to earn stablecoins in exchange for their services.


In the meantime, investors can farm their tokens to earn the native stargate finance (STG) token. They can then choose to stake these tokens to begin earning veSTG, its governance coin.


Governance tokens are a type of management token that allows investors to vote on the future direction of a protocol. For example, a recent proposal by the Stargate Finance community included plans to diversify liquidity.


Liquidity Transfer Layer between Applications

Sushiswap, a decentralized exchange (DEX), is the first to use Stargate with the launch of SushiXSwap. It is built on top of Stargate and facilitates cross-chain trades.


PancakeSwap, Binance Smart Chain's leading DEX, has also partnered with Stargate to launch a cross-chain bridge on their Dapp.


Stargate enables developers to access sizable pools of capital-efficient liquidity without incurring the cost of managing LP emissions, speeds up core development cycles, and gives customers access to native assets.


Stargate automates cross-chain inventory management and provides on-demand access to liquid inventory, eliminating the need for dApps to finance or maintain emissions to encourage LPs across numerous chains.


Stargate Future Remains Bright

With Stargate's plan to integrate with Aptos, dubbed "The Solana Killer," as well as imminent future listing and integrations by notable DeFi players, Stargate appears to be a bright spot in the bear market.