Earn with Stargate

Overview

The Stargate protocol offers three primary yield-generating mechanisms that allow participants to earn rewards, typically in the form of $STG (Stargate’s native token) and/or stablecoins like USDC.

Liquidity Pools

Liquidity pools are fundamental to Stargate, enabling cross-chain token transfers by maintaining reserves of specific assets across different blockchains. Unlike traditional DEX pools focused on swaps within a single chain, Stargate’s pools are optimized for seamless cross-chain asset movement.

When users deposit tokens into a Stargate liquidity pool (e.g., the USDC pool), they become Liquidity Providers (LPs) and receive corresponding LP tokens (e.g., SUSDC) in return. These LP tokens represent their proportional share of the pooled assets and can be redeemed for the underlying assets at any time.

Stargate incentivizes providing liquidity across its supported chains through rewards, which might be paid in $STG or potentially the native token of the respective blockchain. The core bridging mechanism works by users depositing assets into a pool on the source chain and withdrawing the equivalent native asset from the corresponding pool on the destination chain, ensuring a seamless experience.

Farms

After receiving LP tokens from providing liquidity, users have the option to stake these LP tokens in farm contracts to earn additional yield, primarily in the form of $STG rewards.

Staking LP tokens in farms signifies a commitment to providing sustained liquidity, which strengthens the protocol’s capacity for handling cross-chain transactions. Different farms offer varying Annual Percentage Yields (APYs) influenced by factors like pool utilization, total value locked, and specific incentive programs.

Farm rewards distributed as $STG can be claimed and subsequently staked in the Stargate Stake section for further benefits.

Stargate Stake

Users holding $STG tokens, whether acquired through farming, other protocol participation, or from exchanges, can choose to stake/lock them within the protocol. Staking $STG grants users voting escrow STG (veSTG).

veSTG serves as the governance token for the Stargate ecosystem and provides several benefits:

• Governance Power: Grants voting rights within the StargateDAO , proportional to the amount of veSTG held.
• Protocol Fees: Staked $STG (represented by veSTG) may entitle holders to a share of protocol fees.
• Community Roles: Holding veSTG can grant access to specific roles or channels within official community platforms like Discord.

Further Reading