27 May 2023 12:02, UTC
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Stargate, the LayerZero cross-chain bridge protocol, has presented a comprehensive proposal in response to the recent “force majeure” event affecting Multichain and the resulting concerns over the stability of anyUSDC, Fantom’s primary USDC asset. With the aim of mitigating risks and ensuring the integrity of its ecosystem, Stargate has laid out a series of strategic steps to address the situation.
Stargate Proposal And Voting
The first measure in the proposal involves setting STG emissions on the Fantom pools to zero. By doing so, Stargate aims to temporarily halt emissions and minimize potential disruptions caused by the uncertainties surrounding Multichain.
The voting period commenced on May 27, 2023, at 3:47 AM and will conclude on May 30, 2023, at 3:47 AM.
Next, Stargate plans to disconnect the Fantom pools from all other pools within the network. This isolation is necessary to prevent any potential contamination or adverse effects on the wider Stargate ecosystem. By segregating the Fantom pools, Stargate can contain any risks and ensure the stability of the remaining pools.
Read How Fantom Is Most Affected In This..?
Issues With Multichain
To further protect the ecosystem and mitigate potential issues associated with anyUSDC on Fantom, the proposal suggests removing and unwinding anyUSDC POL via Multichain. This process involves transferring the anyUSDC POL to the Ethereum USDC pool, which offers a more established and stable environment for the asset.
On May 25, Binance announced a temporary suspension of deposits for bridged tokens related to Multichain. Meanwhile, multiple sources claim Multichain co-founder and CEO Zhao Jun is currently missing and is suspected of being investigated by the police.
In addition to the technical steps, Stargate recognizes the importance of ensuring a smooth transition for its liquidity providers (LPs). The proposal emphasizes the need to whitelist existing LPs, enabling them to redeem their LP to any other chain.
Read the full article here