Everything You Need to Know About Stargate Finance (STG)

Everything You Need to Know About Stargate Finance (STG)

Decentralized Finance (DeFi) has experienced significant growth over the years. It provides an attractive alternative to traditional payment systems allowing users to keep their transactions 100% secure and anonymous. The competition in the DeFi industry has drastically increased over recent years.

The decentralized exchanges are now offering innovative features to stand out among others. Traditionally, the users need to deal with the intermediaries while transferring assets between decentralized protocols. Stargate Finance resolves this problem with its interoperable nature.

It eliminates the need for dealing with centralized custodians and wrapping services while enabling them to move funds from one DeFi protocol to another.

What is Stargate Finance (STG)?

What is Stargate Finance (STG)?

Stargate Finance is a cross-chain liquidity protocol dedicated to providing a simplified environment for users to transfer and swap their assets between blockchains, decentralized applications (DApps), and layer-2 protocols. With this fully composable native asset bridge, the users can stake assets, add liquidity to multiple pools, and move native assets.

The users can earn passive income by providing liquidity to the protocol. The platform also gives them additional earning opportunities in the form of yield farming. The users receive LP tokens when they add liquidity to a protocol. They can then farm these tokens to earn the native STG token.

The users can stake STG tokens to earn veSTG tokens as a reward for their contribution. The veSTG tokens provide voting rights to the token holders. Thus, they can participate in the platform’s governance using these tokens.

Stargate Finance is primarily focused on supporting stablecoin swaps. Thus, the users barely have to worry about losing their investments because stablecoins are pegged to a stable, traditional asset like USD or gold.

What Problem Does Stargate Solve?

Stargate Finance was introduced with the goal of solving the bridging trilemma. Traditionally, the fractured liquidity technique is used to connect blockchain networks. In this technique, the developers need to create separate pools to establish a connection between blockchain networks. It complicates the process because each chain needs to set up it own liquidity pool.

A unified liquidity technique can help with resolving the issue by allowing users to deposit and withdraw funds from one liquidity pool. However, it may create a problem if a huge number of users tried to withdraw funds at once because the liquidity pool may run out of funds.

Stargate Finance solves this problem by bringing the liquidity of each blockchain to one place. Thus, it improves the overall efficiency of the entire pool. The liquidity is allocated to different blockchains depending on the demand. It helps with achieving instant finality so that the users may not experience any trouble.

Stargate Finance Brief History

Stargate Finance Brief History

Stargate Finance was introduced by LayerZero Labs as the first cross-chain bridge app in March 2022. The renowned crypto developer 0xMaki joined LayerZero’s team on the day of its launch. Daniel Smilkov (CEO), Zachary Tackett (COO), and Michael Zemel (CTO) are the founders of this project.

In March 2022, the team raised around $100 million in funding to develop the cross-chain bridge protocol and expand the team. The team is also working on introducing a lending protocol that may further enhance its operations. Three Arrow Capital, Polychain Capital, and Alameda Research are the leading names that invested in this project in the early stages.

With a strong team of experienced founders, Stargate Finance has the potential to become a leading player in the cross-chain bridge market.

Stargate Important Features

Stargate Important Features

Stargate Transfers – Stargate eliminates the problems associated with wrapped tokens and the lack of liquidity. The protocol offers instant finality with its unified liquidity pools. Unlike other platforms, Stargate Finance provides a fully native asset in exchange. Thus, the users don’t need to swap the wrapped tokens after the completion of the transaction.

Yield Farming – Yield Farming is an effective way to earn regular rewards. The users receive LP tokens once they’ve provided liquidity to Stargate’s pool. They can farm these LP tokens to earn STG. The users can swap the STG tokens for other assets or they can hold these tokens to earn additional benefits.

Rebalancing Fees – The blockchains need to maintain enough reserve balance to handle all the transactions. But a network may run out of funds if more tokens are swapped. Stargate Finance solves this problem by introducing rebalancing fees. The users are incentivized for refilling the low native asset balances.

The platform charges rebalancing fees for swapping tokens from a low asset pool and the fee is distributed among those who help with filling the gap.

Liquidity Pools – Stargate Finance provides access to a wide range of liquidity pools. Thus, the users can switch from one pool to another whenever they want. It gives a lot of opportunities for increasing investments because the platform mostly deals with stablecoins.

On-demand Cross-chain Liquidity – Stargate Finance simplifies the transaction process with its cross-chain liquidity. The developers don’t need to manage the liquidity pool emissions to run their operations.

Staking – As discussed earlier, the users can stake their STG tokens to earn veSTG tokens as a reward. The users can vote for several proposals and initiatives once they’ve received their veSTG tokens.

How Does Stargate Finance Work?

Stargate Finance simplifies the process of transferring funds from one blockchain network to another with the help of LayerZero, an omnichain interoperability protocol. The platform enables users to transfer funds on a 1:1 ratio. It means the users can swap USDT from the BNB chain with the USDT from Solana blockchain. Similarly, they can swap other tokens of the same value from different blockchains.

Stargate Finance Tokenomics

STG is the native token of Stargate Finance that users can use to pay transaction fees. The users can earn STG tokens by providing liquidity for the liquidity pools. With a circulating supply of 204.3 million tokens, STG has a market cap of $111.5 million. It ranks among the 200 best cryptocurrencies in terms of market cap.


Stargate Finance (STG) is a revolutionary cross-chain liquidity protocol that offers a simplified environment for seamless asset transfers and swaps between blockchains, DApps, and layer-2 protocols. By eliminating the need for intermediaries and centralized custodians, Stargate Finance provides users with a secure and efficient method to move funds between different DeFi protocols.

With its focus on stablecoin swaps and innovative features such as yield farming, rebalancing fees, and on-demand cross-chain liquidity, Stargate Finance has the potential to become a leading player in the decentralized finance industry. With a strong team and a growing market presence, STG is poised for further success in the future.

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