Stargate

Stargate is a native asset cross-chain bridge, currently focusing on the cross-chain of stable coins, with unified liquidity and fast transaction finality, and it is also the first project based on the LayerZero protocol.

At present, asset cross-chain bridges generally face an impossible triangle problem, that is, cross-chain bridges cannot meet the following three requirements at the same time:

1. Instant finality guarantee: When the transaction is successfully submitted on the target chain, the funds on the target chain are guaranteed to arrive.

2. Unified liquidity: Shared access to a single liquidity pool across multiple chains.

3. Original assets: Many cross-chain bridges carry out asset cross-chain in the form of casting and destroying synthetic tokens. At this time, the synthetic assets obtained are not the original assets that users want, and need to be further exchanged.

At present, many cross-chain bridges achieve instant finality through the method of "locking original assets + casting synthetic assets | destroying synthetic assets + redeeming original assets". At this time, they also sacrifice the dimension of original assets .

Of course, cross-chain bridges can also be designed with native asset pools with unified liquidity. For example, all chains have USDT unilateral pools, and all chains can share access to their own liquidity. In terms of capital efficiency, it will be better than the current The token pairing pool (the current cross-chain liquidity is combined in the form of a pairing pool, such as Hop's hToken, synapse's nTOKEN) is several orders of magnitude higher, but there will also be some potential problems, such as A chain to C chain initiates a certain amount of USDT cross-chain requests, but other chains also initiate cross-chain requests to chain C and complete transactions earlier than chain A, resulting in the draining of the USDT unilateral pool of chain C or failing to meet the cross-chain requirements of chain A. This creates a very bad user experience for users, that is, there is no guarantee that assets can be received at the target link after a cross-chain request is initiated (the instant finality guarantee cannot be met), and this is also a potential attack loophole.

And Stargate is a cross-chain bridge that breaks through this triangular problem. After having the two dimensions of unified liquidity and native asset pool, Stargate introduces an algorithm called Delta (Δ) to provide instant finality guarantee, which is essentially similar to Based on a set of incentive reward and punishment mechanism, arbitrageurs are encouraged to supplement the insufficient liquidity pool.