Thread by @Cov_duk

Stargate 101: the destroyer of bridges

Here's your everything guide to #stargatefinance, the first bridge to overcome the bridging trilemma.

$STG has been skyrocketing.

A thread 👇🧵

2. The world of crypto has become multi chain.

ETH’s scalability problems have led to the rise of alternative L1s that have sought to solve ETH’s problems and eat its market share.

Players like #AVAX have had big runs and have built massive communities.

3. However, there still one big problem in this multichain world.

There does not exist a proper solution for bridging native assets between chains.

4. Current cross chain bridges have a couple of key problems -

a. they rely on intermediate or wrapped tokens,

b. they can only support a small, limited number of chains

c. they cannot be composed with smart contracts on the destination chain.

5. Bridges strive to have 3 key features:

a. Instant Guaranteed Finality - the guarantee that assets will arrive at the destination chain when a transaction is successfully confirmed

b. Unified Liquidity - shared access of one single liquidity pool between multiple chains

6. c. Native assets - desired assets on the destination chain

The bridging trilemma that bridges face is that bridges can only have 2 out of the 3 properties.

7. Free, easy flow of liquidity across chains is key for this multichain world.

Users frequently move assets from one chain to another to capitalize on opportunities amongst other reasons.

Currently these movements take place through bridges.

8. Bridges can only pick 2 of the 3 features due to the bridging trilemma.

Current bridges do away with native asset transactions due to this reason.

Instead of moving native assets, bridges lock assets on the source chain and mint synthetic assets on the destination chain.

9. However, now there is an opportunity to solve the bridging trilemma through omnichain communication platforms like #LAYERZERO (thread coming soon).

10. Essentially platforms like #LayerZero allow consistent, reliable two way communication between chains, allowing for directly bridging native assets without sacrificing instant guaranteed finality and unified liquidity.

11. Enter #stargatefinance, the first and only bridge to solve the bridging trilemma.

This has big implications - it allows for seamless composability and the wrapping of all DeFi apps.

12. #stargatefinance uses something called the Delta Algorithm.

The Delta Algorithm is a balancing algorithm that allows native token pools while providing instant guaranteed finality and unified liquidity, overcoming the bridging trilemma.

13. The delta algorithm eliminates overheads associated with the lock and mint system, hence benefitting both users and liquidity providers.

Using the delta algorithm, users no longer have to bridge assets numerous times in order to get native tokens on the destination chain.

14. This increases efficiency for LPs as they can stake in a single pool while collecting fees from all transactions, no matter what source chain.

Also, Unified liquidity allows for easy scalability.

15. By overcoming the liquidity trilemma, #stargatefinance has unlocked true composability.

Using Stargate, a user can swap $ETH for $JOE on AVAX in one single transaction, without ever leaving their swap’s UI. This is big news.

16. #stargatefinance reduces costs, enhances the user experience and makes everything possible with 1 click.

Locking & minting of synthetic assets or fragmented liquidity are of the past.

Instead, we can have deep native asset pools linked to all chains. Greater efficiency.

17. LPs can stake their assets into a single sided asset pool with no impermanent loss (HUGE) and collect transaction fees on all incoming transfers, no matter what source chain (HUGE).

Here’s the demo:

18. The $SGT token is the reserved currency and is created without needing to mirror the dollar's purchasing power. T

he SGT token is backed by fiats, however, it is not pegged to any of them Instead, it is backed by a basket of crypto assets.

19. $SGT token has no minting cap. But it can only be created from minting/bonding and profit distribution by staking.

When SGT tokens are minted, the same amount will be transferred to the DAO reserves.

$SGT was launched fairly.

20.

2022 is the year for cross chain infrastructure

For our multi chain crypto future, we need better infrastructure, if we want mass adoption. Bridging between chains is a key activity, yet it is arduous and inefficient.

https://twitter.com/Cov_duk/status/1504793460989067266

21. This is where #stargatefinance, #LAYERZERO and the delta algorithm come in, making everything super easy and seamless, while allowing the user to use the dex of their choice.

This is big news. It spells big things for users and LPs.

22. #stargatefinance & $SGT are already popping off, with $2B in TVL.

Stargate’s future is looking incredibly bright and its success spells big things for crypto as a whole.

23. Accounts to follow for $SGT insights:
@PrimordialAA @0xMaki @ryanzarick @russellhmsmith @0xTangle @JoeyBrander @StargateFinance @kamikaz_ETH @Delphi_Digital @EatCookCryptos @0xCasio @CurveCap @MessariCrypto @pronewchaos @CoastalDegen @WhenWeak

RT would mean a lot!

24. Accounts to follow for $SGT insights:
@hansolar21 @100y_eth @Dynamo_Patrick @jedihornet @Momentum_6 @0xHelix @bitfloorsghost
@seyitaylor @Artimud @DigitsCapital @Sicarious_ @AlamedaTrabucco @martinkrung @DefiMoon @KartelCrypto @JackNiewold @gametheorizing

RT would mean a lot

25. I hope this $STG thread was insightful, a retweet would mean a lot!

More #stargatefinance & #LAYERZERO threads coming your way, follow to stay updated.

Here are my past threads:
notion.so/covduk/4798517…

$STG****

Mistake mistake mistake said $SGT in a couple of places instead of $STG. It's $STG