Proposal to remove Fantom USDC pool to reduce risks in Stargate community

The LayerZero cross-chain bridge protocol, Stargate, has responded to recent issues affecting Multichain and anyUSDC, the main USDC asset on Fantom, by introducing a comprehensive proposal and a voting system for risk mitigation and ecosystem integrity. The voting period began on May 27 and will end on May 30.

The initial step of the proposal involves temporarily ceasing STG emissions on the Fantom pools to mitigate potential disruptions arising from the uncertainties associated with Multichain. So far, about 96.55% of the Stargate community has voted in favor of the proposal.

Subsequently, Stargate intends to isolate the Fantom pools from all other pools in the network to prevent any possible contamination or negative impacts on the broader Stargate ecosystem. The deposited liquidity provider (LP) in this pool amounts to approximately $11.4 million.

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

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

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