Multichain Concerns Lead To Stargate’s New Proposal To Disable Fantom Pool

Key Points:

• Stargate is proposing to disable Fantom Pool and cross-chain paths to mitigate risks associated with the uncertainty around the stability of anyUSDC, Fantom’s primary USDC asset.
• The proposal includes several steps, such as setting STG emissions on the Fantom pools to 0, disconnecting the Fantom pools from every other pool, and removing and unwinding anyUSDC POL via Multichain.

Stargate proposes to disable Fantom Pool and cross-chain paths due to concerns over the stability of anyUSDC. This proposal aims to mitigate risks by taking several steps, including removing and unwinding anyUSDC POL via Multichain.

LayerZero cross-chain bridge protocol Stargate has recently issued a proposal to disable Fantom Pool and cross-chain paths due to concerns over the stability of anyUSDC, which is Fantom’s primary USDC asset. These concerns arose after Multichain announced a “force majeure” event impacting some parts of its service.

This event created a need for more clarity about Multichain’s current status, which in turn has created uncertainty around the stability of anyUSDC.

At launch, Stargate included anyUSDC within its pools as it was considered the “native” asset for Fantom. Currently, there are 11.4 million dollars worth of deposited LP into this pool, and effectively, Fantom pools are isolated from other Stargate pools. The proposal aims to mitigate risks associated with uncertainty by taking several steps. These steps include setting STG emissions on the Fantom pools to 0, disconnecting the Fantom pools from every other pool, removing and unwinding anyUSDC POL via Multichain, and depositing the POL into the Ethereum USDC pool.

Existing LPs would be whitelisted to enable redemption of their LP out to any other chain. LPs can manually remove their LP throughout the voting process and unwind their anyUSDC balance over Multichain. From now on, Stargate should consider expanding bridging options for Fantom users in other ways, including possibly via Hydra. The removal of the Fantom USDC pool and DAO-controlled funds from the pool would mitigate risks to Stargate and its liquidity providers.

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