Stargate Finance, a cross-chain protocol designed to assist users in transferring assets between different blockchains, has accrued over $1.9 billion in total value locked (TVL) in less than a week after launching.
Stargate markets itself as a liquidity transport protocol that allows users to transact native assets cross-chain, offering decentralized finance (DeFi) users the option of staking stablecoins in pools where they are paid out in the native Stargate token (STG).
The rapidly growing TVL is probably down to the "up to 26% APY" being offered farming stablecoin deposits.
By attracting nearly $2 billion in TVL at the time of writing, Stargate has cemented itself as one of the top 10 DeFi projects, according to comparative data from DeFi Pulse.
Stargate has a high-profile supporter in quantitative crypto trading firm Alameda Research CEO Sam Trabucco.
In a Twitter thread to his 150,000 followers, Trabucco announced that Alameda Research had purchased all available Stargate tokens (STG) that had been auctioned off during Stargate’s launch on March 17.
According to LayerZero, the protocol that Stargate runs on, 10% of the total supply of STG or 100 million tokens, were auctioned off to generate liquidity across the seven blockchains on which Stargate is launching.
LayerZero protocol markets itself as an “Interoperability protocol that actually works.”
According to a blog post from LayerZero Labs co-founder and chief technology officer, Ryan Zarick, the Stargate protocol solves something known as the “Bridging Trilemma” by using unified liquidity pools between chains, an instantly-guaranteed finality of transactions and the use of native assets for cross-chain swaps.
Stargate plans to make it possible for any user to transfer assets from one blockchain to another one in a single transaction, skipping over the need to use complicated and convoluted methods such as locking, minting, burning and redeeming assets.
The LayerZero team also announced that they had hired Maki, the co-founder of SushiSwap (SUSHI), to lead business development at Stargate.
Stargate is currently live on seven primary chains including Ethereum (ETH), Polygon (MATIC), Avalanche (AVAX), Binance Smart Chain (BSC), Fantom (FTM), Optimism and Arbitrum. The LayerZero team plans to add support for other chains like Solana (SOL), Terra (LUNA) and Cosmos (ATOM).