Stargate Finance ($STG) Omni'd a drink after this one
Dirt was naughty and jumped the gun before digging deep enough. Thread reported incorrectly on status of a few things like financials ~ thankfully Dirt's following is low.
NOTE: Made minor changes Tokenomics, Financials, Team, Roadmap & Conclusion sections.
NARRATIVES: Multichain / Bridging, Solana-OP-Layer Zero szns 🚜
CHAINS: Multichain
PREFACE: Made minor changes to Tokenomics, Financials, Team, Roadmap & Conclusions section.
Stargate solves the bridging trilemma:
Its rust proof
It supports heavy loads
And it doesn’t freeze during winter
So obviously this shit is tight ~ tight enough for ol Sam Tabasco to sneak in there and mint the whole goddamn initial launch. Tight enough that every tom dick and chain wants to partner with it.
So then what does that mean for us plebs? Thought you’d never ask. It means that this flagship product of Layer Zero, an omnichain L0 (don’t ask), is rather popular and about to become even more so.
With a V2 called Project Hydra and some potential for a Solana bridge on the horizon ~ I’d say WATCH THE FUCK OUT! This 200+ MCAP rank ain’t guna stay so for long.
TOKENOMICS: [ as of 04/25/23 ] (4)
At launch Alameda snagged the entire launch allocation of 15% by paying obscene gas prices ~ even though 5k community wallets showed up. Which meant 50% of the total tokens were now held by the team & VCs, not the greatest. But Alameda got theirs and so those tokens are now locked up for lord knows how many years. This puts the tokenomics into a much better position.
Subtract the heavy unlocks into September and things don’t look so bad. Well the circulating supply & staked supplies are a little low but the FDV/TVL is low enough and there are many holders.
While the distribution was a little shaky in the beginning the DAO has worked hard to turn things around. With profit sharing and tasty financials displayed below 👇
MECHANICS: (4)
Composability: Stargate is the definition of composability
End Game: Become the largest & most integrated token exchanging medium within crypto… notice I didn’t say bridge
Dirt’s “What it do?” =
Transfer: swap 1:1 native assets cross chain, has instant guaranteed finality, a transfer submitted on the source chain is guaranteed on the destination
Pool/Farm: add liquidity and earn rewards.
Stake: Stake STG to receive token emissions, receive voting rights and earn a share in protocol fees.
BaaS: Bridging as a Service
Part of the V2 future, whereby Stargate can be a piece of other protocols barns.
OFT: Omnichain Fungible Tokens ~ trade-able on all supported chains
Want to know in greater detail? Read the docs here!
FINANCIALS: (4)
Stargate earns a lot of fees ~ the people want to use it, but they also give a lot of tokens away for it. Fun fact, Stargate received more fees than Multichain.org this past month. Absolutely wild. So that is a promising factoid. Have to hope V2’s promises of reducing emissions comes through.
However the Treasury is stacked with $350M, with $86M of that earning via farming / staking strategies 🚜
Dirt is forced to say that Stargate is presently at value not ‘under valued’, because its competitor Hop has 1/3rd the P/F ratio and while there is a chance for the emissions to drop they have not yet.
GROWTH: (4)
Stargate has seen some pretty impressive growth as of late, with significant increases to its volume, users & TVL. Is this in anticipation of an airdrop? Or signs of further adoption?
ROADMAP: (4)
Dirt does his best work inside discord. It is where all the goods are found. Like this little snippet about a Solana bridge. That is exciting.
I was just saying how much a pain life has been without FTX … sigh … but maybe its finally time to bury the hatchet and to make SPL txns great again.
TEAM / COMMUNITY: (5)
A very active discord and a DAO in control of the ship… no jesus at the wheel here. Team has a lot of support from the mothership Layer Zero, with some interesting additions. Not all space ships have Michellin chefs like 0xMaki.
ECOSYSTEM / PARTNERSHIPS: (5)
Velodrome to become STG hub on OP
This is a tasty narrative ~ OP szn also has some legs
Libra Exchange (Velo fork on arb) launch proposal for incentivized STG liquidity
Metis partnership allowing for omnichain composability within its eco
Partnered with Sushiswap, Rage Trade, Pancake Swap, OmniBTC & Radiant for "under the hood" integrations
Entangle.fi integration as per the community call
Can expect more and more to come
COMPETITION: (3)
Defi Llama defines Stargate as a Cross Chain protocol vs a Bridge, essentially meaning that it adds interoperability between blockchains in addition to the exchange of tokens. COME ON BRO even Stargate’s docs page 1 states Bridge. Why are we splitting hairs here. If it walks like a bridge, talks like a bridge then it can get fucking hacked like a bridge.
SAFETY: (4)
I don’t like to give protocols a 5 rating on the safety front and even though I wanted to with Stargate I must refrain. V2 means wrapped assets and more bridge-like infrastructure ~ and while we like these things, we must be cautious farmers!
Don’t let a bridge catch you with your pants down ~ you might be de-railed.
BULLISH: (4)
Largest Bug Bounties in crypto ecosystem ($15M for each Stargate & Layer Zero)
No hacks and very security oriented. Billions in transactions
Optimism partnerships
Volume raising at a fast pace; 3x pace of comp.
Distribution fair; though the launch was sub-optimal
Single staked token apy
Solana Bridge
Project Hydra: expansion from only Layer Zero chains via wrapped assets. Adding up to 30 chains, from OG 7
Will aid in liquidity provisioning & thus less token emitting
BEARISH: (4)
Token unlocks are steep until sept '23
Earnings are negative due to token incentives
Though Project Hydra should begin to fix this
V2 multi hop routing will kill instant guaranteed finality for those new transactions ~ something something wrapped assets something.
CONCLUSION: (4.08)
Layer Zero is nearing its launch moment and Stargate is the lead astronaut. So that tells me all the recent hype is likely due to air drop farmers… but that is short sighted bullshit. That kind of stuff will surely lead to some chop suey ~ but we 18 months into a bear market so we used to that.
So the real conclusion is that I’ll be watching these MFers very closely. V2 could turn the tides on their Income Statement and a Solana bridge could REALLY sweeten the deal.
Four isn’t only their score, its what I’m guna be yelling when I drive this baby home.
WATCH THE FUCK OUT!
Nothing in this report should be misconstrued as financial advice. Any investments should be taken at the sole discretion of the reader and/or counter party.
As always, dig deep and DYOR.
Made with love,
DISCLAIMER: The following tools are used to conduct much of my research: Dune, Defi Llama, Token Terminal, Debank, Nansen, Messari, Flipside, Twitter & protocol/community provided data.
Need research assistance? Twitter DM’s are open
Nobody cares about Solana )
Volumes up because of sybilers for now.
So, $STG is much much overvalued for the current conditions.