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Stargate, LayerZero’s internetwork bridging protocol, has responded to a recent “force majeure” incident affecting Multichain and stability issues associated with any USDC, Fantom’s main asset in USDC.
To address these issues and protect the ecosystem, Stargate has introduced a comprehensive proposal and launched a one-choice voting system to mitigate risks and protect the integrity of the ecosystem. The voting period for the proposal began at 3:47 AM on May 27, 2023 and will end at 3:47 AM on May 30, 2023.
As part of the proposal, the initial step includes phasing out PTH emissions from Fantom pools. This action by Stargate is intended to temporarily suspend emissions and mitigate potential disruptions arising from the uncertainties associated with Multichain. Emission is the rate at which new coins are created and issued.
So far, a total of 1.7 million verified members of the Stargate community have voted in favor of this proposal. This figure shows that about 96.55% of the community agrees with the proposal.
Subsequently, Stargate intends to isolate the Fantom pools from all other pools on the network, ensuring that any possible pollution or negative impact on the wider Stargate ecosystem is prevented. Currently, the escrowed liquidity provider (LP) in this pool is approximately $11.4 million. Fantom pools are effectively separated from other pools in the Stargate network.
To enhance ecosystem protection and address potential issues associated with any USDC on Fantom, the proposal recommends removing and spinning up any USDC POL via Multichain. In addition, Stargate suggests exploring alternative bridge options for Fantom users, such as the possible use of Hydra.
Related: Stargate Foundation advises DAO not to reissue STG tokens
On May 25, Binance announced a temporary halt to Multichain-related token deposits. Combined with technical measures, Stargate recognizes the importance of facilitating a smooth transition for its liquidity providers. The proposal highlights the importance of whitelisting current LPs, allowing them to buy back their LPs on alternative chains.