Stargate community proposes removal of Fantom USDC pool to mitigate risks

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

To address these concerns and protect the ecosystem, Stargate is doing the following: introduced We made comprehensive proposals and launched a single-choice voting system for risk mitigation and ecosystem integrity. The voting period for this proposal will begin 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 first step involves stopping STG emissions in Fantom pools. This action by Stargate is intended to temporarily suspend emissions and mitigate potential disruptions arising from uncertainties associated with multi-chains. Emission is the rate at which new coins are created and issued.

So far, a total of 1.7 million verified members of the Stargate community have voted in favor of this proposal. This figure shows that approximately 96.55% of the community agrees with this proposal.

Stargate will then isolate the Fantom pool from all other pools in the network to ensure that it does not pollute or potentially adversely affect the broader Stargate ecosystem. There is currently approximately $11.4 million in Liquidity Providers (LPs) deposited into this pool. Fantom pools are effectively isolated from other pools in the Stargate network.

To better protect the ecosystem and address potential concerns related to any USDC on Fantom, the proposal recommends removal and unwinding of any USDC POL via multichain. Additionally, Stargate suggests exploring alternative bridging options for Fantom users, such as possibly utilizing Hydra.

Related: Stargate Foundation advises DAO not to reissue STG tokens

On May 25, Binance announced a moratorium on depositing bridge tokens related to multi-chains. Stargate recognizes the importance of facilitating a seamless transition for liquidity providers in conjunction with technical measures. This proposal highlights the importance of whitelisting your current LP so that you can redeem your LP on alternate chains.

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