In response to growing concerns about the Multichain protocol, LayerZero’s cross-chain bridge protocol, Stargate, has issued a proposal aimed at addressing the potential risks associated with the Fantom Pool and cross-chain paths.
The proposal includes a series of actions such as disabling the Fantom Pool, setting STG emissions to 0, removing and unwinding any USDC POL via Multichain, and subsequently depositing the POL into the Ethereum USDC pool. These measures are designed to ensure the security and stability of the Stargate ecosystem and protect users’ assets.
Stargate’s proposal aims to mitigate the risks associated with the Fantom Pool and cross-chain paths by implementing several strategic actions. The first step involves disabling the Fantom Pool, which serves as a connection point for transactions between the Stargate protocol and the Fantom network. By temporarily disabling this bridge, Stargate can analyze and address any potential security vulnerabilities that may exist within the Fantom Pool.
Furthermore, Stargate plans to set STG emissions on the Fantom pools to 0. STG emissions refer to the process of distributing STG tokens to liquidity providers as incentives for their participation in the Stargate ecosystem. By reducing STG emissions to zero, Stargate aims to prevent potential exploiters from taking advantage of the Fantom Pool and compromising the overall security of the protocol.
Another crucial step in Stargate’s proposal involves removing and unwinding any USDC POL (Proof of Liability) via Multichain. The POL represents a liability token that is used to represent assets deposited in the Stargate protocol. By removing any USDC POL via Multichain, Stargate aims to eliminate potential risks associated with the Multichain protocol and ensure the integrity of users’ assets.
Once the USDC POL has been removed, Stargate intends to deposit the POL into the Ethereum USDC pool. This transition to the Ethereum network aims to leverage the security and robustness of the Ethereum ecosystem, which is known for its extensive developer community and battle-tested smart contracts. By moving assets to the Ethereum USDC pool, Stargate aims to enhance the overall security and reliability of the Stargate protocol.
