Stargate proposes disabling Fantom Pool amid Multichain issue. In response to the recent unforeseen event known as “force majeure” that impacted Multichain and raised concerns about the stability of any USDC, which serves as Fantom’s main USDC asset, Stargate, the cross-chain bridge protocol on LayerZero, has introduced a thorough proposal to address the situation.
Stargate Proposes Disabling Fantom Pool Amid Multichain Issue
The initial step outlined in the proposal involves temporarily suspending STG emissions on the Fantom pools to mitigate potential disruptions caused by uncertainties surrounding Multichain. Stargate aims to set the emissions to zero for the time being.
The voting period for the proposal began on May 27, 2023, at 3:47 AM and will conclude on May 30, 2023, at 3:47 AM.
Following that, Stargate intends to disconnect the Fantom pools from all other pools within the network. This disconnection is crucial to prevent any potential contamination or adverse effects on the broader Stargate ecosystem.
Currently, there is a total of 11.4 million dollars’ worth of LP (Liquidity Provider) deposits in this pool. The Fantom pools are effectively isolated from other Stargate pools at the moment. To further safeguard the ecosystem and mitigate potential issues associated with anyUSDC on Fantom, the proposal suggests the removal and unwinding of any USDC POL via Multichain.
They add:
Stargate should consider expanding bridging options for bridging options to Fantom users in other ways, including possibly via Hydra.
Binance made an announcement on May 25, stating a temporary halt on deposits for bridged tokens associated with Multichain. Concurrently, there are multiple reports suggesting that Zhao Jun, the co-founder and CEO of Multichain, is currently missing and suspected of being under investigation by the police.
Apart from the technical measures, Stargate acknowledges the significance of facilitating a seamless transition for its liquidity providers (LPs). The proposal underscores the importance of whitelisting the existing LPs, allowing them to redeem their LP on any other chain smoothly.
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