Cross-chain protocol Stargate Finance generates $1.9B in TVL few days after launch

Stargate Finance, a cross-chain protocol, has witnessed massive growth in its first few days of launch, the protocol has amassed over $1.9 billion in total value locked (TVL).
Cross-chain protocol Stargate Finance generates $1.9B in TVL few days after launch

Stargate bills itself as a liquidity transit protocol that enables users to exchange native assets cross-chain, as well as providing decentralized finance (DeFi) users with the option of staking stablecoins in pools and receiving payments in the native Stargate currency (STG).

Stargate intends to allow any user to transfer assets from one blockchain to another in a single transaction, eliminating the need for complicated and convoluted techniques like locking, minting, burning, and redeeming assets.

The “up to 26 percent APY” promised by farming stablecoin deposits is most likely to blame for the quickly rising TVL. According to comparative statistics from DeFi Pulse, Stargate has entrenched itself as one of the top 10 DeFi projects by garnering almost $2 billion in TVL at the time of writing.

Sam Trabucco, CEO of quantitative crypto trading firm Alameda Research, is a high-profile proponent of Stargate. Alameda Research has purchased all the Stargate tokens (STG) that were auctioned off during Stargate’s launch on March 17, Trabucco announced in a Twitter thread to his 150,000 followers.

The LayerZero protocol

The LayerZero protocol bills itself as a “working interoperability protocol.”

10 percent of the total quantity of STG tokens, or 100 million tokens, were auctioned off to generate liquidity across the seven blockchains that Stargate is launching on, according to LayerZero, the protocol that Stargate runs on.

According to Ryan Zarick, co-founder and CTO of LayerZero Labs, the Stargate protocol addresses the “Bridging Trilemma” by utilizing unified liquidity pools between chains, instant assured transaction finality, and the usage of native assets for cross-chain swaps.

Maki, the co-founder of SushiSwap, has been engaged by the LayerZero team to oversee business development at Stargate.

Ethereum, Polygon, Avalanche, BSC, Fantom, Optimism, and Arbitrum are among the seven primary networks where Stargate is now operational. Other chains, such as Solana, Terra, and Cosmos, will be supported by the LayerZero team in the future.