Stargate Finance, a cross-chain liquidity transfer protocol, has collected $1.9 billion Total Value Locked (TVL) in six days.
Stargate Finance allows users to transact their digital assets between different blockchains. This offers Decentralized Finance users an opportunity to stake stablecoins in the pool and receive payments in Stargate token (STG). The platform markets itself as the liquidity transport protocol.
Stargate attracted 1.9 billion in TVL in less than a week after launch. It has become one of the top 10 decentralized finance (DeFi) projects according to DeFi pulse data.
The reason for nearly $2 billion TVL is ‘up to 26% APY’ being offered farming stablecoin deposits.
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Stargate has the support of some prominent names from the Crypto community. The CEO of Alameda Research, Sam Trabucco, announced the involvement of his firm in Stargate via a Twitter thread on March 22nd.
Trabucco informed his 150,000 followers that Alameda Research has purchased all available Stargate tokens (STG) auctioned at the platform’s launch on March 17th.
There’s been some chatter about the recent @StargateFinance auction, and I wanted to clarify a few things about Alameda’s involvement.
— Sam Trabucco (@AlamedaTrabucco) March 22, 2022
The number of tokens auctioned was 100 million which accounted for 10% of the total token supply.
Utility of Stargate:
Stargate runs on LayerZero protocol which fashions itself as an “Interoperability protocol that actually works”.
According to LayerZero, Stargate solves “Bridging Trilema”. The three aspects of bridge constitute unified liquidity, instantly guaranteed finality of the transaction (source), and native assets.
Stargate envisions a solution where users will be able to transfer from one blockchain to another in a single transaction. It will skip the need for processes such as locking, minting, burning, and redeeming of assets.
At the time of this writing, Stargate Finance is live on seven primary chains including Polygon, Ethereum, Avalanche, Fantom, Optimism, and Arbitrum. Support for other chains like Solana, Terra, and Cosmos may is also part of the plan.