Stargate – STG

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Stargate – STG

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Stargate is the first bridge to solve the bridging trilemma. Meaning current bridges are; (1) relying on wrapped tokens, (2) only support small network of chains and (3) cannot be composed with smart contracts on destination chain. Making Stargate the first of its kind that makes cross-chain liquidity transfers seamless and a single transaction process. Is the revolution here already?

What is Stargate – STG?

Stargate is a fully composable native asset bridge and the first dApp built on LayerZero

But Stargate is more than a bridge, it is a revolution in decentralized finance – DeFi, by being fully composable with instant finality of native asset swaps across different blockchains.

The protocol shares its unified deep liquidity across 7 different blockchains for dapps to use. So instead of multiple separate versions of an application deployed across chains you could have a single instance where swaps are routed across chains through Stargate.

On what blockchains does Stargate – STG work? 

The LayerZero network is now live on 7 chains: Ethereum, Polygon, Avalanche, BNB Chain, Fantom, Aribtrum, Optimism.

This review of Stargate – STG was created for informational purposes. This article is not intended for promotion.

General info about Stargate – STG

Team

Stargate is the first dApp built on LayerZero. The LayerZero team consist of 24 people with one familiar sounding name in the crypto space; @0xMaki, who was the co-founder of SushiSwap. He already tweeted about integrating Stargate – STG into Sushiswap.

Whitepaper

For more information about how the Stargate protocol works, please refer to the official whitepaper.

Stargate – STG Token Allocation

Stargate token allocation

1 billion STG have been minted at genesis and will be the entire finite supply of STG. The initial three year allocation is as follows:
  • 17.50% – Stargate core contributors (1-year full lock-up, 2-year linear unlock thereafter).
  • 17.50% – Investors (1-year full lock-up, 2-year linear unlock thereafter).
  • 65.00% – Stargate community allocation:
    • 15.00% – Stargate protocol launch.
      • 10.00% to STG launch auction purchasers.
      • 5.00% to an STG-USDC pool on Curve.fi.
    • 15.95% – Bonding Curve, post-launch.
    • 2.11% – Initial emissions program.
    • Up to 1.55% will be added to DEXs on BNB, Avalanche, Polygon, Arbitrum, Optimism & Fantom
    • The remaining 30.39% is dedicated to future community initiatives & the longterm success of Stargate

Tokenomics

  • Circulating Supply: 70,000,000
  • Total Supply: 1,000,000,000
  • Max Supply: 1,000,000,000
  • Market Cap: 140,000,000

Use case of Stargate – STG

DeFi users can swap native assets cross-chain on Stargate within a single transaction!

The use cases are mind-boggling. Cross-chain composability means users will be able to use dApps and assets across chains without the headaches of bridging or dealing with wallets.

E.g. 

You can swap ETH on Ethereum for BNB on Binance Smart Chain
You can swap BUSD on Binance Smart Chain for USDT on Ethereum
You can swap Xcoin on Xchain to Ycoin on Ychain in one single transaction!

In addition, Stargate can compose native cross-chain transactions at the application level. Think of cross-chain asset swaps, lending and borrowing, farming without leaving the safety of your favorite chain. 

By composing Stargate;

a decentralized exchange – DEX can to complete single transaction cross-chain swaps all within the DEX’s user interface.
a yield aggregator can deploy assets cross-chain, opening up new APY opportunities.

These cross-chain swaps are supported by the community-owned Stargate unified liquidity pools.

What are the benefits for Stargate – STG holders? 

STG holders will be rewarded through ve-staking with expected bribes, fee accrual from trades, and price appreciation as protocols will start to accumulate Stargate – STG to control LP rewards.

Stargate charges a fee for the volume that passes through these and rewards a % to LPs and  % goes to the treasury. From here governance proposal could be distributed to holders (STG/veSTG) and making use of the governance model of STG.

Stargate – STG will be in the background powering liquidity for all cross-chain Decentralized Finance – DeFi, Non fungible tokens – NFTs and gaming.

What is the difference between Stargate – STG and THORChain – RUNE?

Stargate – STG could replace or kill Thorchain. Because we don’t need RUNE when STG offers cross-chain native swaps.

Thorchain is a dex for swapping assets across chains <–> LayerZero, that has build Stargate is a messaging protocol which applications (DEXs, lending platforms,…) can build on. 

Thorchain adds the overhead of additional consensus and uses another blockchain in the middle to perform interoperability. <–> LayerZero achieves interoperability through oracles and ultra light nodes without the disadvantages of adding another blockchain in the middle

 

What do we think about Stargate – STG?

The future for Stargate could be promising. In the coming weeks more integration of non Ethereum Virtual Machines – EVM chains are possible, likely Solana and Cosmos. This could increase awareness and usability. Making Stargate used across ALL DeFi-blockchains. 

Also ve-staking (voted escrow) is announced, which will mean more and more Stargate will be locked in order to earn returns.

FTX exchange also bought a ton of tokens($25 million) in the initial auction. This might be a good sign of smart money taking positions.

Stargate-STG-Alameda-buying-coins

By providing liquidity to the community pools of Stargate, LP’s can earn decent stablecoin APR yields. With over 3 billion dollar total value locked – TVL these rates are fairly high. 

But please consider there is always risk when providing liquidity on just launched/not audited protocols. 

Stargate-STG-Top-Farms

Stargate – STG conclusion

Stargate – STG introduces a broader use case for multi-chain communication, yield and asset management. This allows for native interaction between contracts and thus native asset exchanges on every subnet and between. Stargate is a working example of the first ever Omnichain Fungible Token – OFT that could be a revolution in cross-chain composability. 

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