STG - What is Stargate Finance and STG Tokenomics

Introduction

A prevailing challenge within DeFi today is fractionalized liquidity. Users can't easily share their funds across different blockchains, which reduces their experience and stops investors from looking for new opportunities in the crypto industry.

In this article, we’ll take a look at Stargate Finance, the first dApp built with LayerZero’s technology and the first fully composable native asset bridge.

What is Stargate?

Stargate Finance is a decentralized application built on LayerZero that offers cross-chain features. It serves as a native asset bridge, allowing users to seamlessly swap tokens from one chain to another. For example, you can easily swap USDC on Ethereum to USDT on the BNB Chain. Additionally, Stargate enables users to provide liquidity to a unified pool and earn interest on every transaction made on the platform.

One of the key advantages of Stargate is its ability to facilitate cross-chain interactions for decentralized applications. Let's say you're using SushiSwap and want to swap your ETH on Ethereum for AVAX on Avalanche. Instead of going through the complex process of bridging assets and dealing with wrapped tokens, you can do it all within the SushiSwap interface. Stargate handles the cross-chain interaction behind the scenes, making it a seamless experience for the user.

Stargate was the first dApp built on LayerZero, which attracted plenty of people to the platform, reaching more than U$4 Billion of TVL in only a couple of days! After the bear market of 2022, the TVL decreased by a lot and is now standing at around U$370 Million.

Tokenomics

STG is Stargate’s native token. STG tokens are used for liquidity provision, staking, and making governance decisions that pertain to the Stargate protocol. As a token holder, you can stake your STG to receive veSTG, after which you can take part in governance votes. If you lock your veSTG for an extended period of time, you'll receive more rewards. 

In fact, the Stargate protocol uses a type of time-weighted system that increases the amount of veSTG stakers obtain based on how long the tokens are locked.

There is a maximum supply of 1 billion STG tokens. Currently, there are approximately 200 M in circulation, and the distribution is the following.

Final Words

Stargate is definitely a groundbreaking project that is contributing to the development of a cross-chain world where liquidity fraction is no longer a problem.

If you’re interested in the thesis and want to gain exposure to the project, Kassandra offers two excellent options:

• The Arbitrum Ecosystem Featured Pool is one of the pools managed by Kassandra, designed to provide investors with strategic exposure to leading protocols on the Arbitrum network, based on their Total Value Locked (TVL). 

• Similarly, the Polygon Ecosystem Featured Pool serves as a curated collection of the most promising protocols on the Polygon network, determined by their Total Value Locked (TVL).

Be sure to check them out by clicking on the links above or by reading the recommended articles below. Just remember to always do your own research!