In response to the recent “force majeure” event affecting Multichain and the resulting concerns over the stability of anyUSDC, Stargate, the LayerZero cross-chain bridge protocol, has proposed a comprehensive plan to safeguard its ecosystem. With the aim of mitigating risks and ensuring integrity, Stargate has presented a proposal that includes disabling the Fantom USDC pool and removing all DAO controlled funds from the pool. This article examines the details of the proposal and the measures being taken by Stargate.
Stargate, the LayerZero cross-chain bridge protocol, has proposed a comprehensive plan to safeguard its ecosystem amid the Multichain crisis. In response to concerns over the stability of anyUSDC, Stargate aims to disable the Fantom USDC pool and remove all DAO controlled funds from the pool.
Stargate’s Proposal to Safeguard the Ecosystem
Stargate has put forth a series of measures to address the uncertainties surrounding Multichain and its impact on the stability of any USDC on the Fantom network. The first step in the proposal involves setting STG emissions on the Fantom pools to zero. By temporarily halting emissions, Stargate aims to minimize potential disruptions caused by the ongoing crisis. The voting period for this proposal commenced on May 27, 2023, and will conclude on May 30, 2023.
To prevent any potential contamination or adverse effects on the wider Stargate ecosystem, Stargate plans to disconnect the Fantom pools from all other pools within the network. This isolation is a crucial step in maintaining the integrity and security of Stargate’s operations. Currently, there are approximately 11.4 million dollars’ worth of deposited LP into the Fantom pool, emphasising the need for careful measures during this crisis.
Addressing Issues with Multichain
Stargate’s proposal also includes measures to mitigate potential issues associated with anyUSDC on the Fantom network. They suggest removing and unwinding anyUSDC POL via Multichain, thus eliminating potential risks stemming from the crisis. Furthermore, Stargate acknowledges the need to expand bridging options for Fantom users through alternative means, such as Hydra. This approach ensures that users can continue to access the benefits of Stargate’s ecosystem while minimising exposure to the Multichain crisis.
Smooth Transition for Liquidity Providers
Recognizing the importance of liquidity providers (LPs) in the Stargate ecosystem, the proposal emphasizes the need to facilitate a smooth transition for them. Stargate plans to whitelist existing LPs, allowing them to redeem their LP to any other chain. This step provides assurance to LPs and ensures the continuity of their participation within the Stargate network.
Stargate understands that liquidity providers (LPs) play a crucial role in the Stargate ecosystem and acknowledges the significance of facilitating a smooth transition for them. As part of the proposal, Stargate plans to whitelist existing LPs, granting them the ability to redeem their LP tokens on any other supported chain.
This measure instills confidence in LPs, assuring them that their participation within the Stargate network will continue seamlessly. By prioritizing the needs of LPs, Stargate aims to maintain a strong and supportive community within its ecosystem.
Conclusion
Stargate’s proposal to disable the Fantom USDC pool and remove DAO controlled funds from the pool demonstrates its commitment to mitigating risks and safeguarding the integrity of its ecosystem amidst the Multichain crisis. By taking decisive actions, such as setting STG emissions to zero, isolating the Fantom pools, and addressing issues with Multichain, Stargate aims to protect its users and provide them with alternative bridging options.
