Stargate Finance has announced that SKATE (the Skate token) is now live on its innovative protocol at the core of the Omnichain DeFi movement.
SKATE is the native token that powers Skate’s multi-VM infrastructure – a project that aims to dismantle the technical obstacles between various virtual machines like EVM, Toncoin, Solana, and many more, developing a unified multi-chain execution ecosystem.
On the other hand, Stargate Finance is a cryptocurrency bridge based on LayerZero infrastructure, which enables the movement of assets between various chains efficiently and securely. It links Layer-1 and Layer-2 chains, addressing one of the most problematic challenges in the DeFi landscape: inter-chain liquidity.
Why STAKE tapped Stargate’s LayerZero
The heart of this integration lies in STAKE leveraging Stargate’s LayerZero’s OFT (Omnichain Fungible token) standard to facilitate multi-chain transfers.
Unlike traditional bridges that normally wrap tokens (producing an IOU token on the intended blockchain), the OFT standard provides a more advanced approach. This native approach transfers, burns tokens, and mints equivalent amounts of tokens to the destination chains without fragmentations associated with traditional bridges.
This approach will efficiently maintain STAKE’s supply across integrated blockchains. It will also ensure that SKATE coins are not held or wrapped in liquidity pools on intermediary blockchains, leading to “zero slippage” and no “transfer fees,” as highlighted in the report.
Enabling cross-chain bridging of STAKE tokens
This integration is crucial for the STAKE crypto asset and the wider DeFi ecosystem. First, the integration is set to improve SKATE’s accessibility and liquidity. By enabling STAKE to seamlessly move between multiple blockchains, including Ethereum, Arbitrum, BSC network, Solana, and others, the integration massively increases the token’s liquidity. Through this interoperability, users are no longer restricted to using a single ecosystem, enabling to them use, lend, stake, and trade the STAKE token seamlessly across a wide variety of DeFi applications.
Secondly, the “zero slippage” and no “transfer fees” pledges to create a more cost-effective and efficient user experience. This eliminates common challenges associated with traditional cross-chain transfers, promoting broader use and adoption of STAKE.
Furthermore, the OFT standard enables STAKE’s unified supply across all blockchains. This removes complications and potential challenges associated with wrapped tokens and fragmented liquidity, powering a stronger and more predictable asset for users and developers.
Last but not least, with STAKE’s availability on numerous prominent chains, it can participate in a broader variety of DeFi platforms and yield-generating opportunities. This is set to create new gateways for application and value addition for STAKE token holders.
Finally, leveraging the LayerZero OFT standard places STAKE for greater interoperability as LayerZero continues to widen its supported blockchains. This ensures the asset remains accessible and relevant in the gradually expanding cross-chain DeFi landscape.
