The First Project Report: Stargate Finance Reshaping the Future of Cross-Chain Finance

TFExchange

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Dec 13, 2023
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Stargate Finance is a decentralized financial platform based on the LayerZero protocol. Since its creation by LayerZero Labs in March 2022, it has been committed to providing efficient and low-cost solutions for asset transfer between different blockchains. With its unique cross-chain technology and rich DeFi services, Stargate Finance has become a bridge connecting different blockchain ecosystems. On June 12, 2024, Stargate Finance will log in to The First. Let's first take a look at this cross-chain ecosystem project.
What is Stargate Finance?
The Stargate Finance project belongs to the decentralized finance (DeFi) field, specifically focusing on cross-chain interoperability and liquidity management. The core goal of the project is to achieve seamless asset transfer and efficient liquidity management between different blockchains through LayerZero technology and Delta algorithm. This makes Stargate Finance one of the indispensable infrastructures in the DeFi ecosystem.
Stargate is positioned as an "asset cross-chain bridge". Like the cross-chain interoperability protocol standard LayerZero, the development team comes from LayerZero Labs. LayerZero is a universal information cross-chain transmission protocol created by the development team, which can be understood as similar to the TCP/IP protocol in Internet communication. The positioning is a "protocol standard", on which various targeted application products can be developed. Stargate is the first product launched by the team to apply this protocol standard, specializing in cross-chain transmission in the asset field.
The rapid development of Stargate Finance is due to its unique positioning and precise market grasp. At the beginning of its establishment, Stargate Finance clarified its mission as a bridge between blockchain and decentralized applications (DApps). Through continuous technological innovation and product optimization, Stargate Finance gradually emerged in the field of cross-chain finance.
Currently, Stargate Finance has supported cross-chain asset transfer services for various mainstream blockchains, including Ethereum, BSC, Polygon, etc. Users can easily transfer assets from one blockchain to another through the Stargate Finance platform without going through cumbersome steps such as locking, minting, burning, and redemption. At the same time, Stargate Finance also provides rich DeFi services, such as decentralized transactions, liquidity aggregation, and single-yield agriculture, providing users with a more convenient and secure financial experience.
The success of Stargate Finance is inseparable from its unique technical architecture and advanced technical features. The following are the main technical features of Stargate Finance:
  1. LayerZero Technology: As the core technology of Stargate Finance, LayerZero provides a secure and efficient solution for cross-chain communication and asset transfer. LayerZero technology achieves direct communication between different blockchains in a decentralized manner, solving many problems in traditional cross-chain bridging solutions.
  2. Cross-chain bridging technology: Stargate Finance's cross-chain bridging technology allows users to seamlessly transfer assets between different blockchains. Users only need to perform simple operations on the Stargate Finance platform to quickly transfer assets. This cross-chain bridging technology not only improves the efficiency and convenience of asset transfer, but also reduces user transaction costs.
  1. Liquidity aggregation: Stargate Finance improves the price discovery process by aggregating liquidity from different blockchains, making it easier for users to find the best price for their assets. This liquidity aggregation technology not only improves market liquidity, but also provides users with more convenient asset trading services.
  2. Stargate Finance provides opportunities for single-yield agriculture and staking mechanism, allowing users to earn rewards by providing liquidity to the protocol or locking their STG tokens. This mechanism not only incentivizes customer engagement in the construction of the Stargate Finance ecosystem, but also ensures the stability and Sustainability of the protocol.
Token Economics of Stargate Finance
STG token is the native token of Stargate Finance platform, used for various purposes, including providing liquidity, platform governance, and reward mechanism. The purpose of STG token is to support the long-term growth and customer engagement of the platform. Its purpose is:
Governance and voting
  • Staking and Governance: Users can stake STG tokens as vestG (Voting Hosting STG) tokens to participate in Platform Governance. Users holding VestG tokens can vote on Platform Governance proposals, including key issues such as platform fee adjustments and liquidity pool configuration.
  • Time-weighted rewards: The longer users hold STG tokens, the more VestG tokens they receive, thereby increasing their voting power in governance. This mechanism ensures long-term participation of holders and their focus on platform success.
Liquidity provision and mining
  • Liquidity Supply: Users can contribute STG tokens to the platform liquidity pool to help improve the overall liquidity of the platform. In return, the liquidity provider (LP) will receive a reward for part of the transaction fees.
  • Liquidity Mining: By participating in liquidity mining activities, users can receive additional STG token rewards. Liquidity mining not only improves the platform's liquidity, but also provides users with additional sources of income.
Cross-chain transactions and transfers
  • Fee Reduction: Users can enjoy the benefits of fee reduction when using STG tokens for cross-chain transactions and asset transfers. For example, protocol transfer fees are waived when using STG tokens for cross-chain transfers, while non-STG token transactions require a 0.06% fee.
The total supply of STG tokens is 1 billion, and the current circulating supply is 205 million, accounting for 20.43% of the total. The initial distribution of STG tokens is as follows:
  • 17.5% allocated to the team
  • 17.5% allocated to investors
  • 15.0% is used for protocol initiation
  • The bond curve is 15.95%.
  • The initial release plan is 2.11%.
  • The bond curve DEX is 1.55%.
  • 30.39% allocated to the community
STG has been online for two years now, with a current price of around 0.56 USDT and a market value of about 1 billion USD. As an innovative decentralized finance (DeFi) project, Stargate Finance is expected to become a leading cross-chain interoperability and liquidity management platform, promoting the development of decentralized finance. Now that The First has listed STG, it can greatly improve the trading ecosystem of the platform's spot assets, meet more ecological users for reasonable Asset Allocation, and further promote the development of multi-chain asset interconnection on the platform.