What Is Stargate?
Stargate is a liquidity transport protocol designed to improve upon traditional cross-chain bridges. It addresses the “bridge trilemma” by providing instant guaranteed finality, unified liquidity, and native assets.
Background
Caleb Banister founded Stargate in 2021 through Layer Zero Labs.
How It Works
Previous bridges have only solved two of the three issues posed by the “bridge trilemma.” Stargate has found a way to address all three, making it a more efficient and effective solution for cross-chain transactions.
Stargate integrates with LayerZero to ensure funds on the destination chain are guaranteed as soon as the transaction is completed on the source chain. It uses unified liquidity pools across multiple chains, which protects liquidity providers from impermanent loss. Furthermore, Stargate does not use synthetic assets to move assets between chains; this means bridging and swaps only require a single transaction. Users can stake STG to receive veSTG, Stargate’s governance token, which increases voting power the longer it is staked. Liquidity providers are also rewarded with STG.
Key Takeaways
- Stargate is a liquidity transport protocol to enhance traditional cross-chain bridges by addressing the “bridge trilemma” – instant guaranteed finality, unified liquidity, and native assets.
- Founded by Caleb Banister in 2021, Stargate operates under Layer Zero Labs.
- Unlike previous bridges, Stargate has found a solution to all three issues posed by the “bridge trilemma,” making it a more efficient solution for cross-chain transactions.
- Stargate integrates with LayerZero to provide guaranteed funds on the destination chain as soon as the transaction on the source chain is completed. It uses unified liquidity pools across multiple chains to protect providers from impermanent loss.
- Stargate rewards users who stake STG tokens with veSTG, its governance token. The voting power of veSTG increases the longer it is staked. Additionally, liquidity providers are rewarded with STG.
