Stargate Finance is a cross-chain liquidity protocol that allows users to exchange stablecoins between different Ethereum Virtual Machine (EVM) compatible networks. The Stargate Finance protocol currently supports Ethereum, Avalanche, BNB Chain, Arbitrum, Optimism, Fantom, and Polygon (MATIC).

Stargate platform also pays investors up to 8% APY on stablecoin deposits as a reward for providing liquidity.

What is Stargate Finance?

Founded in 2022, Stargate Finance is a cross-chain DEX created by the LayerZero Labs team that aims to be the main competitor of the Synapse Protocol. The Stargate app allows users to exchange 1:1 native cross-chain assets, which include USDC, USDT, BUSD, FRAX, ETH and other tokens.

Stargate has its own token called $STG, which is used as the governance token for the protocol. Users are paid $STG tokens as an incentive to deposit stablecoins that provide liquidity for cross-chain swaps.

Stargate Finance. STG Tokenomics

Current tokenomics and value accumulation mechanism for the STG token does not exist. This is because the founding team has not yet enabled a "commission switch" that will allow STG and veSTG stakeholders to earn commissions from swaps occurring on the Stargate DEX.

The transition to fees is expected to take place by the end of 2022, and STG tokens can be used to earn a share of the income on the platform. There is currently no way to stake STG tokens other than providing liquidity for STG pairs on Uniswap or other decentralized exchanges.

Is Stargate Finance safe?

The Stargate Finance platform is a secure way to move stablecoins across different chains, as well as a secure platform for depositing coins in order to generate income. The app was founded by Brian Pellegrino who is co-founder and CEO of LayerZero Labs. Based in Vancouver, Canada, Brian and his team are fully tamper-proof and backed by some of the largest venture capital funds in the industry.

Stargate fee
The current fee for moving tokens between chains is 0.1% or 10 basis points (10bps). This is lower than alternative cross-chain bridges such as Synapse, AnySwap, and Allbridge, which charge a base rate of 0.2%, which is currently double that of Stargate.

Stargate Finance also offers the best return on stablecoin deposits, up to 7.5% APY on USDC deposits on trusted networks such as Polygon and Avalanche (AVAX).

Stargate financial blunders
Slippage when moving between networks is 0.5% on Stargate Finance. This means that if you want to transfer 1000 USDC tokens from Ethereum to Avalanche (AVAX), you will lose a maximum of 0.5% on the exchange (5 USDC). This is relatively small slippage compared to competitor platforms on any chain.

As you can see in the example below, when transferring 1000 USDC from ETH to AVAX, we lose only 1.6 USDC - which is much less than the specified slippage amount.

Protocol Overview (current date)

Final thoughts

In our opinion, Stargate Finance is the best cross-chain DEX to exchange tokens and provide liquidity for stablecoin yields. STG tokens may represent one of the best yield farms for accumulating a key infrastructure element in cryptocurrency.