Key Takeaways
- Stargate is the first fully composable cross-chain liquidity transfer protocol for native assets with unified liquidity and instant guaranteed finality.
- Stargate is built over LayerZero, a novel trustless cross-chain messaging protocol that lets smart contracts and decentralized applications living on different blockchains communicate with one another.
- Stargate is built as an open and composable piece of blockchain infrastructure that could be leveraged by other decentralized applications and projects aiming to go multi-chain.
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Stargate is a fully composable cross-chain primitive that enables native asset transfers between blockchain networks with instantly guaranteed finality. It is built on top of LayerZero, a novel piece of omni-chain infrastructure that lets decentralized applications on different blockchains communicate safely and efficiently.
The State of Play in Cross-Chain Liquidity
Stargate is a cross-chain liquidity transfer protocol that lets users and decentralized applications transfer native assets between chains in a capital-efficient manner with instantly guaranteed finality.
To understand Stargate’s value proposition as a novel bridging solution, it’s first necessary to explain how cross-chain liquidity and asset transfers currently work in crypto. Today, users looking to make cross-chain asset swaps have two main options: off-chain, through centralized exchanges, which introduce regulatory, counterparty, and privacy risks, or on-chain, through pieces of blockchain infrastructure called bridges.
Blockchain bridges fall under two broad categories: the first type relies on a consensus-forming middle chain to validate and relay messages across blockchain networks, and the second type runs on an on-chain light node. The downside of the former approach is that it creates a single point of failure, risking the liquidity on all chains in the event of a hack or consensus corruption. It also requires destination…
