Stargate, an Omnichain liquidity transport protocol, announced its integration with Flare, the blockchain data network, as per the latest information shared with Finbold on July 18.
The new integration, a part of the Stargate V2 initiative, connects Flare to over 25 chains, enabling seamless liquidity flow across multiple ecosystems.
Connecting Flare with prominent chains
Stargate V2 serves as a bridge between Flare and prominent chains such as Ethereum (ETH), Arbitrum, Optimism, and Base.
Consequently, the partnership is set to increase Flare’s total value locked (TVL) and enhance liquidity by facilitating easier fund transfers between ecosystems.
Hydra, a key feature of Stargate V2, will enable the fluid movement of USD Coin (USDC), Tether (USDT), and ETH to Flare, where they can be utilized in various dApps and protocols.
The native assets will remain secured in asset pools on their original chains, while equivalent Hydra assets are minted on Flare.
Hydra assets can later be redeemed for native assets via Stargate.
Deepening stablecoin liquidity
Built on the LayerZero V2 general message passing protocol, Stargate has nearly $500 million in TVL and has facilitated over $1 billion in bridged assets in June alone.
Bridging from any Stargate chain to Flare is free, allowing assets to move without incurring fees or slippage.
The integration of Stargate V2 with Flare also coincides with the launch of a major decentralized finance (DeFi) incentives program on Flare, aimed at increasing stablecoin liquidity.
Hugo Philion, Co-Founder and CEO of Flare, summarized the aim of Stargage V2, stating:
“FLRfiSummer is accelerating. With LayerZero V2, Sparkdex, and now Stargate V2, holders of USDC and USDT across multiple networks have seamless access to the industry-leading yields made available by Flare’s new DeFi emissions program. Our aim is to dramatically deepen stablecoin liquidity on the network to provide a secure foundation for the launch of FAssets and the arrival of Bitcoin DeFi on Flare.”
Wrap-up
The DeFi program offers rewards to Stargate V2 users who bridge their USDC and USDT to Flare and contribute to select DEX pools.
Flare’s integration with Stargate V2 expands its access to cross-chain liquidity, reaching users across a number of blockchains.
Combined with the secure and efficient data access provided by Flare data protocols, the integration offers dApp developers a comprehensive stack for building robust omnichain applications.
