Stargate Community Proposes Removal of Fantom USDC Pool to Address Risk Concerns

Stargate Finance

Over 1.7 million verified members of the Stargate community have voted in favor of a proposal. Stargate, a cross-chain bridge protocol called LayerZero, has taken action following a significant incident called “force majeure” that affected Multichain. The concerns mainly revolve around anyUSDC, which is the primary USDC asset on the Fantom network, and its stability.

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Stargate has taken steps to address these concerns and protect the ecosystem. They have put forth a detailed proposal and implemented a voting system where participants can choose one option to mitigate risks and maintain ecosystem integrity. The voting period started on May 27, 2023, at 3:47 AM and will conclude on May 30, 2023, at 3:47 AM.

As part of the proposal, Stargate plans to temporarily halt STG emissions on the Fantom pools. This measure aims to pause the creation and release of new coins to mitigate potential disruptions caused by the uncertainties surrounding Multichain.

Out of the Stargate community, 1.7 million verified members have supported the proposal. This represents approximately 96.55% of the community, indicating strong agreement with the proposal.

Screenshot showing the number of votes for the proposal.

Following that, Stargate plans to separate the Fantom pools from all other pools in the network to prevent any potential harm or negative effects on the wider Stargate ecosystem. Currently, the liquidity provider (LP) deposits in this pool total around $11.4 million. The Fantom pools will be effectively isolated from the rest of the pools in the Stargate network.

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To strengthen ecosystem security and tackle concerns surrounding any USDC on Fantom, the proposal suggests removing and unwinding the any USDC POL via Multichain. Furthermore, Stargate proposes investigating alternative bridging solutions for Fantom users, including the potential utilization of Hydra.

On May 25, Binance temporarily suspended deposits for bridged tokens linked to Multichain. Alongside technical measures, Stargate recognizes the importance of ensuring a smooth transition for its liquidity providers. The proposal emphasizes the need to whitelist existing LPs, enabling them to redeem their LP on different chains.

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Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.

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  • SHBAZ

    A crypto enthusiast, Loves to write, Loves to explore and stay up-to-date about the latest developments in the crypto world. #Btc #Crypto #NFT

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