Stargate Responds to Multichain Incident

Stargate, the LayerZero cross-chain bridge protocol, has responded to the recent “force majeure” incident affecting Multichain and the stability concerns surrounding anyUSDC, Fantom’s principal USDC asset.

Stargate has introduced a comprehensive proposal and initiated a single-choice voting system for risk mitigation and ecosystem protection to address these concerns and protect the ecosystem.

The proposal’s voting period began at 3:47 AM on May 27 and will conclude at 3:47 AM on May 30.

Following the proposal, the first step entails halting STG emissions from the Fantom pools.

This action by Stargate is intended to temporarily suspend emissions and mitigate potential disruptions caused by Multichain’s unpredictability.

The rate at which new coins are produced and distributed.

To date, 1,7 million verified Stargate community members have voted in favor of the proposition.

This number indicates that approximately 96.55% of the community supports the proposal.

Subsequently, Stargate intends to isolate the Fantom pools from all other pools in the network, thereby preventing any potential contamination or adverse effects on the Stargate ecosystem.

The deposited liquidity provider (LP) in this pool is approximately $11.4 million at present. The Fantom pools are effectively isolated from other Stargate network pools.

The proposal recommends removing and unwinding anyUSDC POL through Multichain to enhance ecosystem protection and address potential concerns related to anyUSDC on Fantom.

In addition, Stargate proposes investigating alternative bridging options for Fantom users, including the possible use of Hydra.

Binance temporarily halted deposits for bridged tokens associated with Multichain on May 25.

In addition to the technical measures, Stargate recognizes the importance of ensuring a smooth transition for its LPs.

The proposal emphasizes the significance of whitelisting existing LPs, allowing them to redeem them on alternative chains.