We aim to illustrate how the Total Value Locked (TVL) of Stargate on Ethereum has changed from its inception. What is the percentage of TVL in each token staked in Stargate?
Lets first discuss about a small introduction about Stargate network . The Stargate network is a scalable, composable cross-chain bridge built on LayerZero that can transfer assets between different blockchains. One of the main shortcomings of most current bridges is their inability to transfer native assets between chains. They use an intermediary token instead of a wrapped token for the purpose of bridging. A disadvantage of this approach is that it is extremely inefficient and makes the user’s experience very difficult. Using Stargate, users can send native tokens directly to non-native chains and avoid tying up their funds in wrapped tokens. In order to guarantee instant and finality, the protocol makes use of unified liquidity pools shared by chains. Cross-chain bridging can be made seamless and easy with Stargate.
As we all know , The term TVL, or total value locked, basically refers to the spot value (normally expressed in USD) of all assets staked in an account. It is often used as an indicator of the health of an account.
Using Stargate, other DAPPs can easily integrate and access cross-chain liquidity transfer while maintaining the source chain GUI and avoiding destination gas fees.Deep liquidity provided by Stargate can be used by other DAPPs as the main artery for volume between chains which will allow them to provide seamless, fast, and secure cross-chain interoperability. Stargate’s unified deep liquidity can then be accessed by all DAPPs cross-chain. For this service, a fee is taken of 0.06% of which 0.045% goes to LPs and 0.015% to the Treasury (which can then be distributed to $STG holders and $veSTG through governance).
With Stargate, we have taken a big step towards the Layerzero-based DAAP. The tweet below indicates this.
1/ Don’t sleep on Stargate, a fully composable native asset bridge with unified deep liquidity and instant guaranteed finality. It is the first DAPP built on the highly anticipated LayerZero #Interoperability protocol.$STGhttps://t.co/WJf3nss2yD— Seq 🔺 (@CryptoSeq) March 18, 2022
The dashboard below shows us the current Stargate TVL on the Ethereum blockchain. In addition, you can view the current liquidity of the USDC and USDT tokens in Stargate.
This graph shows the total value locked (TVL) of Stargate for Ethereum on a daily basis. Initially we didn’t see much TVL, but we could observe a maximum TVL of 1.22B in April 5, 2022. There was again a decrease in TVL. On March 17, 2022, a minimum TVL of 55.83M was observed. The total TVL has increased by more than 8 times from March 17, 2022 to April 26, 2022. Overall, TVL is trending upward. We can conclude, however, that the trend of TVL of Stargate on Ethereum is decreasing as we look at the day-to-day changes.
Here is a graph showing how the TVL of Stargate has changed week over week on the Ethereum blockchain. In the beginning we can see the TVL reached more than 500%, but later we can see a downward trend in TVL.
Taking a look at the following tweet, we can see there are now the various STG pools. Based on the below graphs, let’s discuss the different Stargate pools.
STG pools are now live everywhere pic.twitter.com/6Vfh21OA6m— Stargate (@StargateFinance) March 18, 2022
From the below graph we can see the TVL of Stargate on Ethereum by different Liquidity pools ( USDC and USDT). The Liquidity provided by USDC pool is more than the USDT Pool. Maximum TVL of 1.22B was observed in April 5, 2022 . We can see the decreasing trend of TVL on both the pools.
According to the below graph, we can see that USDC and USDT pools have different percentages of TVL. On the pool USDC, it is possible to see there are more than 60% staked out liquidity. The USDT pool is contributing more TVL than the USDC pool of these two pools.
Based on the above analysis, it is apparent that the trend of TVL of Stargate on Ethereum is decreasing as we look at the day-to-day changes. It is all because of the volatile nature of the crypto market. The price of the Stargate token has also been reduced considerably.If we look at the different liquidity pools , on the pool USDC, it is possible to see there are more than 60% staked out liquidity. The USDT pool is contributing more TVL than the USDC pool of these two pools.