Stargate community proposes removal of Fantom USDC pool to mitigate risks

Stargate, the LayerZero cross-chain bridge protocol, has responded to the recent “force majeure” incident impacting Multichain and the stability concerns surrounding anyUSDC, Fantom’s main USDC asset. 

To address these concerns and safeguard the ecosystem, Stargate has introduced a comprehensive proposal and initiated a single-choice voting system for risk mitigation and ecosystem integrity. The voting period for the proposal began at 3:47 AM on May 27, 2023, and will end at 3:47 AM on May 30, 2023.

As part of the proposal, the initial step involves ceasing STG emissions on the Fantom pools. This action by Stargate intends to temporarily suspend emissions and mitigate potential disruptions arising from the uncertainties associated with Multichain. Emission is the speed 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 about 96.55% of the community is in line with the proposal.

Screenshot showing the number of votes for the proposal.

Subsequently, Stargate intends to isolate the Fantom pools from all other pools in the network, ensuring the prevention of any possible contamination or negative impacts on the broader Stargate ecosystem. At present, the deposited liquidity provider (LP) in this pool amounts to approximately $11.4 million. The Fantom pools are effectively segregated from other pools within the Stargate network.

In order to enhance ecosystem protection and address potential concerns related to anyUSDC on Fantom, the proposal recommends the removal and unwinding of anyUSDC POL through Multichain. Additionally, Stargate proposes exploring alternative bridging options for Fantom users, such as potentially utilizing Hydra.

Related: Stargate foundation advises DAO against reissuing STG tokens

On May 25, Binance declared a temporary halt on deposits for bridged tokens associated with Multichain. In conjunction with the technical measures, Stargate acknowledges the significance of facilitating a seamless transition for its liquidity providers. The proposal highlights the importance of whitelisting current LPs, allowing them to redeem their LP on alternative chains.

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