Stargate Finance (STG) is a decentralized cross-chain liquidity bridge built on LayerZero. It enables the transfer of assets between different blockchains in a single transaction. ^[1][2]

Overview

Launched in March 2022, Stargate Finance was built by LayerZero Labs - a cross-chain interoperability platform. It is an omnichain-native asset bridge addressing the blockchain trilemma, which asserts that no blockchain can simultaneously be decentralized, secure, and fast. It facilitates cross-chain DeFi transactions, enabling users to transfer and swap assets across different blockchains, layer-2 networks, and decentralized applications (dApps) efficiently. ^[3]

"With Stargate, users & dApps can transfer native assets cross-chain while accessing the protocol’s unified liquidity pools with instant guaranteed finality" - the website states^[1]

Stargate users can also move their assets between different liquidity pools on various DeFi protocols and dApps. The protocol supports transfers between chains like Ethereum, Avalanche, Polygon, Metis, BNB Chain, Arbitrum, Optimism, Fantom, Kava, Linea, Scroll, Base, Mantle, Aurora, etc. ^[4]

V2 Launch

Stargate's V2 went live on May 31, 2024, on 16 chains. Stargate V2 introduces enhancements to reduce bridging costs, accelerate chain expansion, and optimize capital efficiency. With the implementation of transaction batching, Hydra, and the AI-driven Planning Module (AIPM), Stargate V2 offers an efficient and scalable cross-chain experience in DeFi. ^[8][9]

"Stargate V2 addresses the challenges of cost, speed, and connectivity head-on. By maintaining instant guaranteed finality across all transactions, Stargate V2 ensures that users can conduct their cross-chain activities with confidence, knowing that their assets will be transferred securely." - the blogpost concluded. ^[8]

STG Token

$STG is the native governance and utility token of Stargate Finance. The token can be staked or used to provide liquidity and participate in protocol governance. By staking $STG, token holders receive $veSTG, Stargate's voting escrow token. The protocol utilizes a time-weighted reward system that increases the amount of $veSTG earned by stakers as they lock it for longer periods. ^[4][5]

$STG has a total supply of 1 billion tokens. 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), and 65.00% - Stargate community allocation. ^[6]

Stargate DAO

Stargate is governed entirely by Stargate token holders via voting escrow. Governance determines all Stargate network and incentives matters, including protocol development, integrations, tokenomics, and the distribution of emissions to stablecoin liquidity providers. ^[7]

Voting Power

Time Weighted Voting

Time-weighted voting is used to provide long-term Stargate token holders greater governance weight and control of the Stargate protocol. veSTG is the unit of Stargate governance voting power. It is received by staking locked Stargate tokens and is non-transferable. ^[7]

Stargate Foundation

The Stargate Foundation is dedicated to supporting the growth, development, and sustainability of the Stargate protocol. Their efforts will include Community-led initiatives, including grants to contributors, Partnerships with other DeFi & crypto organizations, Marketing & communication initiatives, and Day-to-day operations and maintenance of the Stargate protocol. ^[7]