Juliet BStargate Finance is the first decentralized application built on LayerZero, which aims to be omnichain. With the increase in use ofEthereum in 2021, different channels and layer 2 made their appearances. This was necessary to accommodate the ever-increasing number of users on the network. We then experienced major periods of network congestion with ever-increasing gas costs (and sometimes intolerable).
During this period of excitement, many "competitors" to Ethereum fought over rate of returns ever more important. We then used more and more networks and the question of interoperability between the different chains then emerged.
It was from there that we started talking about " bridge blockchain » and to understand their importance.
—> Read the article on bridges and their uses.
Stargate Finance Protocol Overview
The mission of Stargate Finance is to enable liquidity transfers between different chains. The exchange is simply done with a single click. We can then transfer any token from one chain to another.
For example, you can exchange DAI on Ethereum for MATIC on the Polygon network. Cross-chain swaps are very simple and fast on the protocol. The idea is that users can move native assets across different chains by accessing the different protocols' liquidity pools.
You may wonder why Stargate Finance is such a sensation because there are already dozens of bridges?
In fact, it is above all for the simplicity of the practice that Stargate Finance stands out. Built on Layer Zero, Stargate Finance facilitates the very concept of custom bridges. Until now, bridges allowed bridging wrapped tokens. Just like the Wrapped Bitcoin (wBTC), we can wrap all the tokens to facilitate their transfers. However, this then required them to be unwrapped in order to be able to use them later. Thus, it required additional costs and time. Some protocols required a few hours to be able to recover your tokens…
This is what Stargate Finance solves. It's not nothing. This is a real technical breakthrough in DeFi. It's even huge and at the end of this article, you will understand better.
Why Stargate Finance
If Stargate Finance is such a success, it is also for its yield aggregator with very attractive APYs.
The protocol also has pools for adding liquidity. This allows you to receive stablecoin incentives on each transfer made on Stargate. For fans of Yield farming, the liquidity providers can also stack their LP tokens to receive STG tokens.
Thus, STG token holders can stake their STG tokens and receive veSTG, Stargate's governance token. Remember that the protocol is entirely decentralized and that the community is very attached to this point.
Whitelist Partnership Program
The Stargate Finance protocol has set up a program for those who would like to invest more deeply in the project. So, those with high trading volume can apply to join the program. Partners will then receive 0,3 bps for transactions sent via the protocol. Each month they will receive stablecoins.
This reward system was put in place to rebalance the liquidity pools as best as possible and to avoid excessive transfers which would empty them.
What are the positive points for investing in Stargate Finance?
With Stargate Finance and with the STG token, we place ourselves in another level. It’s a protocol that has great ambitions. Even more, it is a protocol that meets a real need compared to others of the old generation.
Likewise, the protocol brings real innovation with its omnichain composability. This is where the essence of the protocol lies.
In fact, Stargate Finance is the first bridge and the only one (for the moment) to solve (at best) the famous Blockchain trilemma.
It eliminates the pathological need for applications to fund or maintain (ever higher) APYs to “force” farmers to stay on the protocol. This has always ended in failure because farmers are speculative and sell their tokens to move to other more lucrative protocols. This is why decentralized finance is full of Dapp who experience short lives...
In this context, Stargate Finance can single-handedly revolutionize AMM and liquidity pools.
Are there any risks in investing in the STG token?
This is always the question we ask ourselves. When a new protocol comes out, we tend to want to invest in it quickly. That said, the T reached record highs a week after the protocol was launched. Today, the protocol has a value of $656,558,400.74 dollars. That says a lot – consideringa bearish period– on the potential of Stargate Finance. In the crypto community, many people have already invested.
However, you must remain cautious and continue to do your research on the tokenomics of the protocol. THE market cap of the STG token is currently €110,030,516, which places it in the micro caps with high potential. The enthusiasm still needs to continue...
In fact, with the size of Yield farming, tokens tend to experience irrevocable declines over time after a good pump.
–> Read the article Why is Yield Farming native tokens being dumped?
Where to buy the STG token?
If you are comfortable with the DeFi, obviously, you can also buy it on a DEX like Uniswap, here. Check the address of the STG token on coinmarketcap For example. If you are not yet familiar with DeFi, do not hesitate to read our guide DeFi for Beginner.
You can buy STG token on many exchange platforms such as Binance or Huobi.
Note: No financial advice is given in this or any other article on this blog. This is information of which you are the sole judge and master. Be responsible with your investments and only invest as much as you are willing to lose.
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