Stargate Finance, a cross-chain protocol designed to help users transfer assets between different blockchains, has amassed over $1.9 billion in total value locked (TVL) in less than a week after launch.
Stargate bills itself as a liquidity transfer protocol that allows users to cross-chain transactions with their own assets, offering decentralized finance (DeFi) users the ability to stake stablecoins in pools where they are paid out in Stargate’s native token (STG).
The rapidly rising TVL likely boils down to “up to 26% APR” being offered for stablecoin deposits.
By raising nearly $2 billion in TVL at the time of writing, Stargate has established itself as one of the top 10 DeFi projects, according to DeFi Pulse benchmark data.
Stargate has a high-profile supporter in Sam Trabucco, CEO of cryptocurrency quantitative trading company Alameda Research.
In a Twitter thread to his 150,000 followers, Trabucco announced that Alameda Research has acquired all available Stargate (STG) tokens that were auctioned off during the Stargate launch on March 17th.
There was some talk about the recent @StargateFinance auction and I wanted to clear up a few things about Alameda’s involvement. — Sam Trabucco (@AlamedaTrabucco) March 22, 2022
According to LayerZero, the protocol Stargate runs on, 10% of the total supply of STG, or 100 million tokens, was auctioned off to create liquidity on the seven blockchains Stargate runs on.
The LayerZero protocol bills itself as “a really working interoperability protocol”.
According to a blog post by LayerZero Labs co-founder and CTO Ryan Zarick, the Stargate protocol solves what is known as the “Bridge Trilemma” by using unified cross-chain liquidity pools, instant guaranteed transaction completion, and using native assets for cross-chain swaps.
Stargate plans to provide any user with the ability to transfer assets from one blockchain to another in a single transaction, bypassing the need for complex and confusing methods such as blocking, minting, burning and redeeming assets.
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The LayerZero team also announced that they have hired Maki, co-founder of SushiSwap, to lead business development at Stargate.
Stargate currently operates on seven major chains including Ethereum, Polygon, Avalanche, BSC, Fantom, Optimism and Arbitrum. The LayerZero team plans to add support for other networks such as Solana, Terra, and Cosmos.