Future of Stargate

@shedevrum

Today I want to talk about the Stargate project - the first product on LayerZero. I've been working with the protocol since the spring of 2022 when I created the first cross-chain strategies on 3Commas. From that moment, I started providing liquidity to pools and accumulated a certain amount, in addition to making purchases in the spring of 2023.

For those completely unfamiliar - you can read more here: https://docs.layerzero.network/explore/protocol-overview

For me, the average cost of ownership is $0.12 USD, with an average fund price of $0.25. Currently, I have a 3.5X return.

@cryptorank

I'll briefly highlight important aspects of the tokenomics for me:

Supply - 1,000,000,000 STG

Team and early seller locked tokens (linear unlocking until March 2025) - 204,750,000 (20.5%)

Locked in staking - 45,660,381.88 (4.5%)

Tokens for the team and investors, amounting to 20%, will continue to unlock linearly until March 2025.

@cryptorank

The project actively continues to build up volumes in anticipation of the LayerZero drop.

Negative aspects:

TVL (Total Value Locked) is decreasing, more than 10 times from the highs. WormHole, Across, and Orbiter actively take market share from bridge networks.

@stargate_finance

The number of transactions has decreased almost 10 times from the peaks.

@stargate_finance

Very little activity from the team:

@github/stargate_finance

Stargate is just a representation of the LZ functionality, so it might not be actively developed.

@snapshot

Market

Here's how the situation looks among competitors:

@defiliama/bridges

Out of the 7 largest bridges, 4 are L2 network bridges, which we do not consider.

Therefore, the closest competitors are:

Across and Portal by Wormhole

@defiliama

Portal by Wormhole

@defiliama

Narratives

- Stable revenue of 1 million per month:

@defiliama

- Growth in the number of transactions when announcing the date for LZ.

- Current low entry price - as the token has not pumped in this cycle.

@coinmarketcap

- The platform itself holds significant value for the ecosystem.

- Expected addition of non-EVM networks - Solana, Cosmos-Hub, Aptos, Sui.

Summary

I plan to double my position in STG. Currently, I am buying 50% of the allocated amount; the remaining 50% I will either invest after new narratives in LZ.

I set a minimum target of x2 from ATH - around 8 (x14).

My Chanel: https://t.me/global_investment_io

My Debank:

https://debank.com/profile/0x50662aede1e73a1f6ffc6b3bbb1ea5c4d8083ed5