In less than a week after its inception, Stargate Finance, a cross-chain protocol that helps users transfer assets between blockchains, has amassed over $1.9 billion in total value locked (TVL).
Stargate bills itself as a liquidity transit protocol that enables users to transact native assets cross-chain, as well as providing decentralised finance (DeFi) users with the option of staking stablecoins in pools and receiving payouts in the native Stargate currency (STG).
The “up to 26% APY” provided on farmed stablecoin deposits is most likely to blame for the fast-growing TVL.
Sam Trabucco, the CEO of quantitative crypto trading firm Alameda Research, is a high-profile advocate of Stargate.
Trabucco stated to his 150,000 Twitter followers that Alameda Research has purchased all of the available Stargate tokens (STG) that were auctioned off during Stargate’s March 17 debut.
According to LayerZero, the protocol that Stargate works on, 10% of the entire quantity of STG tokens, or 100 million tokens, were auctioned off to establish liquidity across the seven blockchains on which Stargate will launch.
The LayerZero protocol bills itself as an “interoperability protocol that works.”
The Stargate protocol, according to Ryan Zarick, co-founder and CTO of LayerZero Labs, addresses the “Bridging Trilemma”. By leveraging unified liquidity pools between chains, instant assured finality of transactions. As well as the usage of native assets for cross-chain swaps.
Stargate intends to allow any user to transfer assets from one blockchain to another in a single transaction. Eliminating the need for complex and cumbersome techniques like locking, minting, burning, and redeeming assets.
Maki, the co-founder of SushiSwap, also employed by the LayerZero team to oversee business development at Stargate.
Ethereum, Polygon, Avalanche, BSC, Fantom, Optimism, and Arbitrum are among the seven principal chains on which Stargate is now operational. Other chains such as Solana, Terra, and Cosmos will receive support from the LayerZero team in the future.