Stargate Finance Review

Stargate Finance Review

Adrian Graham
Fact Checked
Jan 26, 2023

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

The Stargate platform also pays up to 8% APY for investors to deposit stablecoins as a reward for providing liquidity.

Table of Contents

Platform Highlights

  • Earn up to 8% APY on Stablecoin Deposits.
  • Secure Cross-Chain DEX for Stablecoin swaps.
  • Compatible with 6 different EVM-based Networks.
Stargate Finance
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Audited Proof of Reserves
Audited Proof of Reserves

What is Stargate Finance?

Founded in 2022, Stargate Finance is a cross-chain DEX that was built by the LayerZero Labs team that is designed to be a major competitor to Synapse Protocol. The Stargate application allows users to swap 1:1 native assets cross-chain which include USDC, USDT, BUSD, FRAX, ETH and other tokens.

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

Stargat Finance Yields.
Stargat Finance Yields.

Stargate Finance: STG Tokenomics

The current tokenomics and value accrual mechanism for the STG token are nonexistent. This is because the founding team has yet to turn on the 'fee switch' that would enable STG and veSTG stakers to earn fees from swaps that take place on the Stargate DEX.

The fee switch is expected to come online by the end of 2022 and STG tokens will be stakeable for revenue share on the platform. There is no way to stake STG tokens at this current moment, with the exception of providing liquidity on STG pairs on Uniswap or other decentralized exchanges.

Stargate Staking
Stargate Staking.

Is Stargate Finance Safe?

The Stargate Finance platform is a safe way to move stablecoins across various chains, and a safe platform to deposit coins to earn yield. The application was founded by Bryan Pellegrino who is the Co-Founder and CEO of LayerZero Labs. Bryan and his team are based in Vancouver, Canada, and are fully doxxed and backed by some of the largest VCs in the space.

You can read more about the genesis of LayerZero Labs and Stargate Fiance in this Twitter post by Bryan Pellegrino.

Stargate Fees

The current fee to move tokens across chains is 0.1% or 10 basis points (10bps). This is lower than alternative cross-chain bridges like Synapse, AnySwap and Allbridge which charge a base rate of 0.2%, which is currently double Stargate.

Stargate Finance also offers the best yields to deposit stablecoins with up to 7.5% APY to deposit USDC on secure networks like Polygon and Avalanche (AVAX).

Stargate Finance Slippage

The slippage to move between networks is 0.5% on Stargate Finance. This means that if you want to move 1000 USDC tokens from Ethereum to Avalanche (AVAX), you will lose a maximum of 0.5% in the swap (5 USDC). This is a relatively small slippage compared to competitor platforms on any chain.

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

Stargate Finance Swap.

$STG Token Price

The chart below is the live price of Stargate Finance ($STG) in US Dollars.

Final Thoughts

In our view, Stargate Finance is the best cross-chain DEX to swap tokens and provide liquidity to earn yield on stablecoins. STG tokens may represent one of the best yield farms to accumulate a key piece of infrastructure in Cryptocurrency.

Stargate Finance and $STG tokens are one of Buy Bitcoin Bank's top picks for 2023 and the next bull-run as we believe infrastructure and omni-chain investments will outperform the general market.

Adrian Graham

Co-Founder & former banker turned Full-Time DeFi analyst and researcher. Left traditional finance to pursue my interest in digital assets and decentralized finance.

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