Stargate, LayerZero’s cross-chain bridging protocol, has responded to the recent “force majeure” incident affecting Multichain, as well as stability concerns surrounding anyUSDC, Fantom’s top USDC asset.
To address these concerns and safeguard the ecosystem, Stargate has submitted a comprehensive proposal and initiated a one-choice voting system for risk mitigation and ecosystem integrity. The voting period for the proposal began at 3:47 AM on May 27 and will end at 3:47 AM on May 30.
As part of the proposal, the initial step involves the cessation of STG issuances in Fantom pools. This action by Stargate intends to temporarily suspend emissions and mitigate possible disturbances derived from the uncertainties associated with Multichain. Issuance is the rate at which new coins are created and released.
So far, a total of 1.7 million verified members of the Stargate community have voted in favor of the proposal. This figure shows that around 96.55% of the community agrees with the proposal.
Subsequently, Stargate intends to isolate Fantom’s pools from all other pools on the network, ensuring that any potential contamination or negative impact on the broader Stargate ecosystem is prevented. Currently, the liquidity provider (LP) deposited in this pool amounts to approximately USD 11.4 million. Fantom pools are effectively segregated from other pools on the Stargate network.
In order to improve ecosystem protection and address potential concerns related to any USDC on Fantom, the proposal recommends the deletion and unrolling of any USDC POL via Multichain. In addition, Stargate proposes to explore alternative bridge options for Fantom users, such as the possible use of Hydra.
On May 25, Binance temporarily suspended deposits of bridge tokens associated with Multichain. Along with technical measures, Stargate recognizes the importance of facilitating a smooth transition for its LPs. The proposal highlights the importance of whitelisting current liquidity providers, allowing them to redeem their LP tokens on alternative networks.
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