Stargate Finance (STG) is a DeFi liquidity-sharing protocol that enables users to swap assets at a 1:1 ratio across blockchains. The protocol operates as one of the premier liquidity transport options for traders today. Stargate Finance continues to see growing adoption with the network showing more than $426,760,701.00 in total value locked. Here’s everything you need to know about Stargate Finance.
What Problems Does Stargate Finance (STG) Attempt to Fix?
Stargate Finance was created as a solution to a variety of issues faced by blockchain users. The network helps to solve liquidity issues by enabling a true bridging of liquidity via pools and other DeFi options.
Wrapped Assets
The use of wrapped assets has been on the rise following the success of wrapped Bitcoin. Wrapped assets leverage specific smart contracts that lock an asset on its core chain and then issue a corresponding asset on the new chain. This method works but isn’t ideal due to delays with finality and other issues.
Stargate Finance enables developers and users to swap in native assets directly as opposed to wrapped assets. This approach is more efficient as it reduces the steps and requirements to issue assets across chains.
Stargate Finance users can swap native assets directly on a 1:1 basis. This approach leverages stable assets. For example, you could swap USDT on the Ethereum blockchain directly for USDC on BNB smart chain. This option is more efficient as you are using the native asset directly following the swap.
Delays
One of the biggest issues with wrapped assets is the delays surrounding finality. When you have multiple networks involved due to the wrapped nature of the asset it can cause delays. These delays can result in issues for specific use case scenarios. Stargate Finance supports instantly guaranteed finality. To accomplish this task, transactions on the source chain arrive on the destination chain directly.
Benefits of Stargate Finance (STG)
Stargate Finance brings many benefits to the market. It opens the door for more shared liquidity. The DeFi revolution has been slowed by the compartmentalized nature of the sector. The growth of individual networks helps but doesn’t give the market enough liquidity to surpass adoption levels.
Composable
Composability is another benefit that Stargate Finance users enjoy. The network enables developers to select modules to suit their particular needs. This strategy enables developers to create software more efficiently by reducing the amount of programming needed to create advanced Dapps.
Deepen Liquidity
Stargate Finance helps to deepen the liquidity of the entire DeFi sector. The platform supports shared access to a single pool across networks. Notably, the system supports these actions across multiple chains at once which makes it ideal for specific use cases.
How Does Stargate Finance (STG) Work?
Stargate Finance is built on layer 0 protocol which means that it supports the creation of other blockchain networks and Dapps. The system is part of the larger Omnichain DeFi ecosystem which continues to expand.
Stargate Finance combines a variety of reward-generating DeFi strategies to empower users and drive action. The network combines liquidity pools, farming, staking, and multiple blockchain assets to accomplish this task.
Liquidity Pools
Liquidity Pools are large community smart contracts. These protocols are interest-bearing systems that pay rewards for providing liquidity to the pool for a certain time. The more tokens you add to the liquidity pool, the higher your returns. Liquidity pools have preset APYs which makes it easy to see what your returns will be at the end of the lock-up period.
Farming Pools
Stargate Finance has farming pools as part of its liquidity generation protocols. These systems are like staking and liquidity pools in that you secure returns for providing liquidity to the pool. However, there are some distinct differences between farming and other options.
Farming pools have varying APYs and lock-up periods. The best token farmers will move their assets between pools to get the highest ROIs. As such, farming takes a little more effort and practice than staking.
Staking
Stargate Finance users can also stake their tokens. Staking enables you to gain access to the community governance system. It also provides you with rewards for your liquidity. Staking is a popular blockchain feature because it enables you to secure returns without risking your original asset.
Token -STG
Stargate Finance has a multi-token strategy in use. The network uses STG as its main utility token. The token is needed to pay fees and cover smart contract executions. It can also be used to send value internationally in a permissionless manner. STG is a rewards token as well.
aSTG
The Stargate Finance launch was the special issuance of aSTG tokens. These tokens were sent to those who purchased STG in Stargate’s Launch Auction.
veSTG
Voting in the Stargate Finance network requires veSTG tokens. These tokens are rewarded to stakers. The more veSTG you hold and the more weight your vote carries. Notably, you can convert all tokens on exchanges when needed.
Stargate Finance (STG) Governance
Stargate Finance uses a community governance system that gives the average user a say in the platform’s future. These systems enable anyone to stake their tokens and gain access to proposals and voting.
History
Stargate Finance entered the market in Q1 2022, The network seeks to help solve multiple pinpoints in the market with its direct asset exchange system. Today, Stargate Finance has a large following which continues to expand.
Bottom Line
Stargate Finance is a pioneer in the DeFi market due to its unique approach to sharing liquidity and assets. The systems industry-wide focus continues to help push its adoption. Expect to hear a lot more from Stargate Finance as more people turn to DeFi to escape inflation and other woes of the centralized financial markets.
