Native Asset Cross-Chain Application Stargate

Bhim5551

"Stargate (STG) is a cross-chain application built on the LayerZero protocol, focusing primarily on cross-chain transactions involving native assets.

LayerZero is a cross-chain communication protocol that facilitates the exchange of messages between different blockchains or smart contracts. It can be essentially understood as a message transmission channel, serving as a means of communication between blockchains. With LayerZero, developers and users can not only achieve message transmission between different blockchain networks but also enable messaging between DApps across various blockchain networks.

With LayerZero, data and asset exchange messages from a DeFi application on Chain A can be transmitted to a DeFi application on Chain B. This tool enables cross-chain composability of DeFi applications, including the execution of cross-chain financial activities.

Mechanism:
As the first product on LayerZero, Stargate addresses what it calls the ""Three Challenges"" of current cross-chain bridges: ""immediacy of cross-chain asset arrival,"" ""unification of cross-chain liquidity pools,"" and ""nativeness of assets after cross-chain transfer."" In the current cross-chain infrastructure, these three elements can only satisfy one or two of the challenges.

For instance, cross-chain bridges operating under the ""locked assets + wrapped packaging"" model, while achieving immediate cross-chain arrival, often result in assets that are not native but rather wrapped assets. These wrapped assets often need to be converted into native assets on the target chain for better usability. On the other hand, ""liquidity pool"" style cross-chain tools, due to the deployment of liquidity pools on different blockchain networks, cannot provide unified liquidity, leading to limited asset quantities in the liquidity pools on each chain, which may not meet the demands of users for large cross-chain transfers. Additionally, some cross-chain bridges within Layer2 scaling networks may fail to guarantee immediate arrival."

Samiksha

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