Stargate is a fully composable cross-chain bridge protocol built on LayerZero that enables native asset transfers across blockchains.
Stargate was built on LayerZero technology, an omnichain interoperability protocol, to simplify the process of sending assets from one chain to another. Stargate achieves this through unified liquidity pools, access to native assets, and instant guaranteed finality.
Bridging protocols generally must ensure there is enough liquidity available on the destination chain to facilitate any transfers. Without instant guaranteed finality, transactions could be reverted which results in a poor user experience. A common workaround for this is the lock-and-mint (or burn-and-redeem) mechanisms. Rather than assume the destination chain has sufficient liquidity, the bridge will lock the native asset and mint a wrapped asset, thus guaranteeing sufficient liquidity. This approach, however, requires the user to manually swap the wrapped token on the destination chain to complete the bridge transfer.
Stargate eliminates the use of wrapped tokens and is able to swap native assets 1:1 across various chains due to it accessing unified liquidity pools. Most existing bridges operate through fractured liquidity, which means that each chain is assigned exclusive access to a designated liquidity pool for their users to deposit and withdraw from in order to bridge assets. As such, each chain maintains a separate liquidity pool with different chains having disparate levels of liquidity. Stargate resolves this with its unified liquidity design where all connections deposit and withdraw from a single pool. Due to this design, users no longer need to worry about transactions failing due to a lack of liquidity or issues with a wrapped token. Stargate also implements rebalancing fees to incentivize users to perform swaps that help refill low native asset balances and dissuade users from performing transfers that could deplete reserves on any given chain.
Stargate charges several transaction fees. Each non-STG transfer through Stargate incurs a 6bps fee, with 4bps going to the protocol treasury, 1bp to STG stakers (veSTG), and 1bp to liquidity providers (LPs).
You can earn money by providing liquidity to earn a portion of transfer fees for a particular asset on a given chain. Anytime that asset is used to transfer between the source chain and destination chain, you earn a fee. STG stakers (veSTG) also earn a portion of protocol fees by staking on the platform.