Stargate Finance Review

Stargate Finance Review

A comprehensive review of the Stargate Finance cross-chain bridge that was developed by LayerZero Labs. Learn about their platform, fees and the STG token.

Summary: Stargate Finance is a cross-chain liquidity bridge, enhancing interoperability between various blockchains and dApps. The platform has undergone rigorous security audits and offers yield-earning opportunities through transaction fees and liquidity provision. Leveraging LayerZero protocol, it overcomes the "bridging trilemma" that traditional bridges face, ensuring immediate finality, unified liquidity, and native asset support.

Stargate Finance
4.9 out of 5 from 45 reviews.
Stargate Finance is the safest and most popular EVM cross-chain bridge. It supports ETH, USDC, USDT, DAI and BUSD.
Supported Networks
Ethereum, Arbitrum, Polygon, Optimism, BNB Chain and others
Trading Fees
Cross-chain swap fees as low as 0.1% per trade
Supported Assets

Content Guide

What is Stargate Finance?

Stargate Finance stands as a fully composable native asset bridge, streamlining cross-chain liquidity transfers into a seamless, singular transaction. It has revolutionized the previously complicated process of moving liquidity between layer 1 and layer 2 networks - a reality that was once considered an elusive dream.

Stargate Finance empowers users to engage with a broad array of decentralized applications (dApps) irrespective of their network origin. This fosters interactions between diverse ecosystems that were formerly isolated, bolstering the cross-chain connectivity. Boasting a significant transaction volume, the bridge serves as the leading cross-chain bridge, with over $5 million transferred daily through their multi-chain liquidity protocol.

Stargate Finance Review

Is Stargate Finance Safe?

Stargate has undergone audits from three major entities — Quantstamp, Zelliz, and Zokyo. In addition, they launched the most significant bug bounty program in history in April, offering a maximum reward of $15M on both Stargate and LayerZero platforms. The protocol is controlled by multi-signatures, the details of which can be found in the attached link.

Additionally, a two-phase security mechanism was introduced in the Stargate Relayer earlier this year. The first phase, known as 'The Dome', is designed to repel all attacks from harmful external contracts. The second phase, termed 'Pre-Crime', assesses all messages from Stargate, running them on a local level to prevent any message or attack that could disrupt the system and cause irregularities in the accounting records from reaching the operational system. More information about 'Pre-Crime' can be found here.

Stargate Finance Available Networks

Stargate operates across various networks, facilitating a range of assets as detailed below:

  • Avalanche: USDC, USDT
  • Polygon: USDC, USDT
  • Arbitrum: USDC, USDT, ETH
  • Optimism: USDC, ETH
  • Fantom: USDC

Notably, the Stargate protocol's token, STG, is accessible across all these networks.

Why is Stargate Finance the Best Bridge?

Leveraging the LayerZero communication protocol, Stargate offers a superior bridge solution for native assets, ensuring instant guaranteed finality and unified liquidity. This triumphs over the "bridging trilemma", a common issue faced by conventional bridges:

  1. Instant Guaranteed Finality: Stargate ensures fund availability on the destination chain immediately after a successful transaction on the source chain.
  2. Unified Liquidity: It consolidates liquidity pool access across multiple chains.
  3. Native Assets: Stargate supports desired assets (native or high-liquidity synthetic) on the destination chain.

Traditional bridges often compromise one of these features, typically favoring wrapped tokens over native assets. This approach locks the native asset on the source chain, creating a wrapped asset on the destination chain. Such bridges also face liquidity issues, needing to bootstrap liquidity for each newly integrated chain, thereby limiting expansion.

Contrarily, Stargate maintains a shared liquidity pool across chains, ensuring liquidity adequacy. The secret to this balance lies in its innovative Delta algorithm, the cornerstone of their trilemma solution. This algorithm positions Stargate ahead of its rivals, enabling seamless integration into various networks, thereby boosting scalability and efficiency.

Bridging Trilemma

What Yields can I Earn on Stargate?

Stargate Finance offers various ways for users to earn yield, including transaction fees, liquidity provision, and rebalancing fees. For each non-STG transfer, a 0.06% fee is taken, which is distributed to the protocol treasury, veSTG holders, and liquidity providers. Liquidity providers can earn 5-10% APY in the form of STG emissions, while STG tokens can be locked to receive veSTG, the governance token, allowing users to participate in DAO control and earn from transaction fees.

Rebalancing fees are implemented to maintain pool balance across networks, as users deposit and withdraw funds. Users moving balances further from the target are charged fees, which are then used as rewards for those who contribute to pool rebalancing. Additionally, the treasury fee flow may be utilized to incentivize rebalancing depending on the pool's deviation from its target.

Stargate Yields

Stargate Finance Social Media

For a deeper understanding of Stargate Finance and their latest updates, visit their official website and follow their social media platforms:

Bottom Line

Stargate Finance stands out as a premier decentralized bridging protocol catering to on-chain users across diverse EVM networks. Their platform boasts one of the most robust interoperability architectures, thanks to the expertise of the Layer Zero labs team, marking it as a secure choice for value transfer between chains.

Moreover, the Stargate Finance token, $STG, presents a fascinating investment prospect, as it captures all transactional value from the platform. This feature not only allows token holders to share in the protocol's success but also shields them from potential risks.

As the popularity of decentralized finance protocols surges, Stargate Finance is strategically positioning itself to be a dominant force in the arena. Armed with an experienced team and a groundbreaking platform, it is on a fast track to secure its place as an industry leader.

Frequently Asked Questions

Got More Questions? We've Got Answers.
A Guide to Commonly Asked FAQs.

How does Stargate Finance ensure safety?
Can I earn yields on Stargate Finance?
Which networks does Stargate Finance operate on?