Rise of the bridge destroyer and the Omnichain future
With the recent bridge hacks of up to $320 million, I believe there is a huge demand for the safety of a cross chain future. With that said, LayerZero Labs came to the rescue with Stargate Finance.
Stargate Finance is a composable native cross-chain asset bridge with unified liquidity, instant guaranteed finality and having the aim of making cross-chain liquidity transfer a seamless, single transaction process!
They welcome us into the omnichain. The omnichain is the interoperability of different chains being connected to one another, negating the need of wrapped tokens!
Since their launch, they’ve gathered a whopping $3.5B in TVL (Total Value Locked).
What makes Stargate so special?
Users are able to swap native assets cross-chain on $STG within a single transaction.
Think of cross-chain asset swaps, borrowing, lending and farming without leaving the comfort of your preferred chain.
Eg: Users can swap $USDC on Ethereum for $USDT on Binance Smart Chain.
Stargate Finance is the first bridge to solve the bridging trilemma, the Ikigai of DeFi.
Well, what are the problems?
- Instant Guaranteed Finality, the guarantee of a transaction from source chain to destination chain.
- Native Assets, true swaps (USDC) vs synthetics (fUSDC)
- Unified Liquidity, a pool of liquidity shared between all chains.
Stargate Finance uses their Delta Algorithm.
A novel resource balancing algorithm that enables unified native asset pools on all chains while also providing Instant Guaranteed Finality.
This unlocks true composability.
Users can swap $wBTC on Ethereum for $JOE on Avalanche in a single transaction without leaving the swap’s UI. Enabling the complete unified experience for multichain Dapps like Sushi Swap and Abracadabra.
This ultimately reduces cost and enhances user experience within a click of a button. I believe this will be the turning point for the high barriers of entry for the common man, making the process easy.
Well, this kind of sounds like Thorchain?
“ They are fundamentally different projects. Thorchain is a DEX, it allows you to swap asset A on chain X to asset B on chain Y and it does so through its own network of validators/ own consensus mechanism.”
“ LayerZero is not a bridge/ DEX/ etc, it’s a messaging protocol focused on generic messaging. Bridge, DEX, etc are things that could hypothetically be built on top of LayerZero itself is a communication protocol.”
“ Stargate is not a DEX, it won’t do A > B asset, only like-kind assets eg: USDC > USDT. Think of it more like a stableswap.” — Primo
Well, isn’t Cosmos a Layer 0 as well?
In LayerZero, the block headers are committed by an independent oracle, while in Cosmos the main chain coordinates the block headers.
To top it off, Stargate Finance offers attractive yields on stables, ranging from 18% — 16%!
The protocol is further backed by Alameda Research, who is one of the largest crypto investment firms. More in-depth information about the purchase in the thread below:
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