Stargate Finance (STG) is an innovative crypto project that pioneers the concept of blockchain trilemma. Launched in 2022, the project provides users with flexibility in the DeFi ecosystem.

 

Quoting Coinmarketcap.com, as of Monday (June 10, 2024), Stargate Finance is ranked 424th with a market capitalization of $114,450,545 and a daily transaction volume of $12,958,366.

 

Now, to understand more about what Stargate Finance is, from its main features, how it works, to its tokenomics, check out the full review below.

 

 

What is Stargate Finance?

Stargate Finance (STG) is a liquidity protocol designed to address the blockchain trilemma, the three main challenges of blockchain networks: decentralization, security, and speed.

 

Stargate aims to simplify cross-chain DeFi transactions allowing users to transfer and exchange their assets across different blockchains, layer-2 networks, and decentralized applications (dApps) almost instantly.

 

Users can move their assets between various liquidity pools across different DeFi protocols and dApps. These protocols support transfers across various blockchains, including Ethereum, Avalanche, Polygon, Metis, BNB Chain, Arbitrum, Optimism, and Fantom.

 

Basically, Stargate Finance is a platform that allows users and dApps to transfer crypto assets from one blockchain to another easily. This is similar to exchanging money from one currency to another, but in a more modern crypto context.

 

Stargate Finance is a crypto project developed by LayerZero Labs, a leading company in the field of omnichain protocols. Launching in March 2022, the project is designed to be the first of its kind inter-blockchain bridge application.

 

Key Features of Stargate Finance

The following are some of the key features of Stargate Finance that are important to know, among others:

 

1. Cross-Chain Token Transfer

 

The Transfer feature on the Stargate platform allows users to exchange assets between different blockchain networks. For example, using this cross-chain swap service, users can exchange USDT on BNB Chain for USDT on Ethereum, or vice versa.

 

Typically, this process requires multiple transactions and the use of bridge services. However, Stargate DEX reduces the number of steps required to execute cross-chain token exchanges directly.

 

In addition, the Transfer feature also allows users to exchange STG tokens between blockchain without the need to pay protocol transfer fees.

 

They only need to pay gas fees that are usually associated with blockchain transactions. As for non-STG token exchanges, a fee of 0.06% is charged.

 

2. Liquidity Pools

 

Stargate Finance provides access to token-chain liquidity pools. The liquidity pools on the Stargate platform provide support for Stargate DEX. This gives users the opportunity to earn rewards by participating as liquidity providers (LPs).

 

 

To add liquidity to a Stargate pool, connect your crypto wallet to Stargate and navigate to the “Pools” section of the app. Users can choose from a variety of available liquidity pools, all powered by the ERC-20 token standard.

 

Liquidity providers (LPs) receive LP tokens that represent their share of the pooled assets in the pool.

 

These LP tokens entitle their holders to a share of the transfer fees on Stargate DEX, proportional to their asset contribution in the pool.

 

Pool rewards to LP are paid in the form of stablecoin. In addition, LP tokens are redeemable at any time, allowing users to exit the liquidity pool at any time.

 

3. Farming

 

The Farming section of the Stargate Finance platform allows users to farm LP tokens from Pools to earn rewards in the form of additional crypto assets. Users who have LP tokens can farm them to earn STG tokens.

 

It should be noted that Farming carries additional risks for users. However, savvy investors can maximize their profits by utilizing LP tokens in this way.

 

4. Staking

 

Stargate Finance adopts a decentralized governance model, allowing community members to participate in decision-making by voting on proposals governing changes to the Stargate platform.

 

Community members who staking their STG tokens will receive veSTG, the governance token of the Stargate network. To participate in Stargate governance, users can head to the “Stake” section of the app and connect their wallets.

 

As for the longer lock-up period, it will provide higher rewards. Currently, about 18.36% of the total STG supply is locked with an average lock-up time of 453 days. This indicates a portion of STG tokens are held for a certain period of time, affecting market liquidity.

 

How Stargate Finance Works

 

Stargate Finance features a unique approach to how it works, setting it apart from other blockchain bridging applications. Stargate uses a lock+mint and burn+redeem mechanism.

 

These mechanisms burn tokens on the origin blockchain and mint new tokens on the destination blockchain, ensuring instant finality and sufficient liquidity.

 

In addition, Stargate uses a sophisticated cross-chain bridging mechanism as well as a balancing algorithm called the delta algorithm to overcome the bridging trilemma.

 

The token used for governance and utility functions in Stargate Finance is STG. By staking STG, token holders can receive veSTG, Stargate’s voting escrow token.

 

The protocol also implements a time-based reward system that increases the amount of veSTG earned by staking holders over time. This can incentivize token holders to hold and lock their STG for a certain period of time.

 

 

Tokenomics STG

 

Stargate Finance (STG) was launched on March 17, 2022. The maximum supply of these tokens is limited to 1,000,000,000 STG, with the current outstanding amount of approximately 204,358,050 STG (approximately 20% of the total supply).

 

The distribution of Stargate Finance tokens (STG) is as follows:

 

• 17.50% allocated to Teams
• 17.50% allocated to Investors
• 15.00% allocated to Launch Protocol
• 15.95% allocated to Bonding Curve
• 2.11% allocated for Initiation Emission Program
• 1.55% allocated for Bonding Curve DEX
• 30.39% allocated for Community

 

Conclusion

 

In conclusion, Stargate Finance offers several key benefits, including (1) cross-chain liquidity, (2) simple processes, (3) rewards for liquidity providers, and (4) decentralized governance.

 

Stargate Finance itself shows great potential in strengthening interoperability between blockchains, which is a crucial aspect in the development of the DeFi. ecosystem.

 

With its innovative approach to cross-chain liquidity and decentralized governance, Stargate could continue to attract users and investors.

 

If the team continues to develop features and maintain the security and reliability of the platform, Stargate has the potential to become one of the major players in the DeFi ecosystem.

 

Importantly, Stargate Finance plays an important role in the DeFi ecosystem by facilitating the efficient and secure transfer of assets between various blockchains.

 

By providing solutions to liquidity and interoperability challenges, Stargate helps advance DeFi towards a more connected and integrated ecosystem.

 

Furthermore, its successes and innovations could drive wider adoption of DeFi and strengthen the foundation of decentralized finance as a whole.

 

Let’s Invest in Stargate Finance (STG) Easy, Safe, and Profitable on INDODAX

 

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As a disclaimer, it should be noted that as with other types of investments, investing in crypto assets also carries its own risks.

 

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FAQ

 

1. What is Stargate Finance and who are the founders?

 

Stargate Finance is an interoperable liquidity protocol that facilitates the movement of assets between various blockchains and DeFi protocols. The project was founded by LayerZero Labs and launched in March 2022.

 

2. How does cross-chain token transfer work on Stargate Finance?

 

Stargate Finance allows users to swap assets between different blockchain networks through its cross chain swap service. Users only pay a gas fee for STG token transfers, while non-STG token swaps are charged 0.06%.

 

3. What are liquidity pools on Stargate Finance and how do they work?

 

Liquidity pools on Stargate Finance allow users to provide liquidity to the platform and receive LP tokens representing their share of the pool. LPs are rewarded in stablecoins from Stargate DEX transfer fees.

 

4. What is yield farming and what are the risks at Stargate Finance?

 

Yield farming on Stargate Finance allows users to use their LP tokens to earn additional rewards in the form of STG tokens. While profitable, farming carries risks, such as changes in token value and market volatility.

 

5. How does the staking system work in Stargate Finance and what are the benefits?

 

The staking system in Stargate Finance allows STG holders to lock their tokens and earn veSTG, a governance token used to vote on platform change proposals. Staking also provides higher rewards with longer lock-up periods.