This is the most clear analysis of one of the newest coins introduced in this crypto market!

The most exiting part is that I will give explicit information about the future potential of a specific coin that prove its power and won attention after just four months of its release.

If you want to find out the coin I am talking about that gives huge potential stay with me.

Let's get started.

Are we in a bear market? Can crypto survive these times?

Right now, we are in a recession, because if we think about the definition.. we had 2 consecutive quarters of negative GDP (Gross Domestic Product) figures.

But we all know, we had been in a recession for quite a time. And with a recession it comes the decreasing prices of stocks too. That means we are in a bear market right now.

Usually the crypto market follows the stock market. This is not a rule, but they do have a high correlation. The crypto market is now in a bear market, because the assets' prices are in a downturn (the prices keep decreasing, with rare momentum), even the volatility is high. Volatility represents the swings in the assets' prices. Basically, the price of an asset could be 10$ and in a short period of time it could reach 20$ or go lower to 5$ or 0$ and never recover.

A lot of crypto projects died in this bear market. Terra LUNA, Voyager, 3 Arrows Capital and Celsius are the most significant ones.

The question now is: Can crypto survive?

Bitcoin (BTC) is trading at 21.443$ at the moment of writing and its previous high was at 68.789$ in November 2021. So, in almost a year BTC's price has dropped approximately by 3 times lower. It is also known that altcoins tend to move like Bitcoin. If BTC price drops, the altcoins' prices drop. This is what is happening now. But, exceptions from the rules are inevitable. Why were rules made? Some could tell:  'to be broken'.

We are going to look in one particular altcoin that could potentially bring huge benefits in the near future. The altcoin is called STG and it did not followed the rules lately.

One of the most trusted exchanges, Coinbase, listed STG token at the beginning of August. When Binance Exchange, another popular exchange, announced the listing of STG token at the end of this month an increase in price was expected, but the results were incredible.

On the time of the writing STG coin price is at 0.7462$. The higher price it have reached was 4.284$. 

STG coin increased in value over 200% in just 24 hours, after listing on Binance. This were some big news in crypto space that took place just 3 days ago. But why did this happened with STG token in particular? There are many coins that get listed on trusted exchanges and do not face such a pump. Was it a scheme in the middle of STG extraordinary price increase? Or is STG token a new powerful and promising tool that will revolutionize the emerging crypto space? If you are curious to find more about STG coin and its power, keep reading.

Introduction to STG coin. Stargate Finance project

Stargate Finance is a Decentralized Finance project that aims to improve the actual DeFi functionalities. Stargate Finance was launched on 17 march this year and was built on Layer Zero blockchain. It had an incredible journey since then.  Stargate Finance went live through auction: 100 milions STG coins were issued, a proportion of 10% of the maximum supply of 1 billion.

With Stargate Finance users can easy interact with Defi in a safe and efficient way. If you are just starting into Defi or you are already familiarized with the space there is no better place that could help you grow your strategies or learn new one than Stargate Finance! Do not miss the chance to get involved now!

STG is the native governance token for the DeFi protocol Stargate Finance. A governance token represents a percentage of ownership, giving the users voting power over changes in the functionality of smart contracts which run the protocol. Stargate Finance is a project that supports Decentralized Finance applications like swapping tokens, staking, adding liquidity to a pool and yield farming.

It is fine if you are not familiarized with this terms yet. Let me explain them.

Decentralized Finance functions

• Decentralized Finance

  Known as DeFi, Decentralized Finance is a big part of the crypto space; DeFi can not exist without blockchain, a immutable distributed ledger. DeFi seeks to build and combine open-source financial applications (that are NOT controlled by an entity, but by the code ) that works like traditional financial institutions. But, instead of relaying on humans to execute our financial requests like taking a loan, or deposit funds in a savings fund to receive interest, we, as consumers, relay on computers to do all these in a decentralized way. The most exciting benefits DeFi provides to use is lower fees and a quick time of execution for our transactions (minutes or seconds depending on the blockchain the DeFi application was built).

The best benefit is that Decentralized Finance give the unbanked people the opportunity to interact with financial services. They just need a        smartphone or a computer.

If you ever open a saving fund at a bank, you know that the interest you receive is is usually very low, about 0.1% percent, and more.. fiat money tends to lose its value because of the inflation, so the savers almost got nothing with this deal. We can actually say they may lose money ). Decentralized deposits can give up to 10% interest or more from our initial deposit, per year.

Now you know why this field is a big one for the economy and for our lives.

Giving access to financial opportunities is the field where Stargate Finance earned its place. 

• Swapping

  Swapping is simply the exchange for one type of token to another in a non-custodial way ( no third party involve ).

Most protocols called DEXs ( Decentralized Exchanges) like Uniswap or Compound allow users to swap a token for a wrapped token using bridges. This seems complicated, but let's make it simple: after summiting your token that uses a specific blockchain to a swap, you will receive a token with the same value, but in a 'wrapped' form, so you can use it on another blockchain than the native one. This is a nice way to increase the interoperability between different blockchain, but there are some limitations. In this way, the trustworthiness of many of the coins offered in exchange for wrapped versions is questionable. A lot of the issued tokens are sensitive to centralization because they depend on the platform that issues them. Since decisions about wrapped assets are made centrally, there is a risk of market consumption and maybe abuse of power.

Stargate Finance provides a solution for this!

Stargate Finance uses cross-chain bridges to make swaps in such a way that tokens do not need to be wrapped. Users can now benefit from more liquidity and lesser limitations to interact with another decentralized application.

Using wrapped tokens usually make decentralized financial options harder to meet their ends, because a user will have to go to multiple DEXs in order to finally receive what she or he wants.

Stargate is a fully composable liquidity transport protocol that lives at the heart of Omnichain DeFi. With Stargate Finance, users and decentralized applications can transfer native assets cross-chain while accessing the protocol’s unified liquidity pools with instant guaranteed finality. Instant guaranteed finality is the guarantee that any transfer request that is committed on the source chain (native chain) will be successfully committed on the destination chain as well. The key implication being here is that enough liquidity is available on the destination chain to facilitate the transfer.  

So, in plain language, how does it work? You register the coins on the native chain and you get the same coins, but on another chain. This is possible because of the so called 'Delta Algorithm' and 'Delta Bridges', which have unique features like being cross-chain composable, which allows a cross-chain transfer to be composed with smart contracts on the destination chain in one transaction. Usually the lesser the number of the transactions, the better the efficiency. So, us, as users, benefit for more efficiency, like little money spend on (gas) fees, security and little waiting time.  

• Staking

       Staking is the act of putting up collateral as proof of a party’s stake in the crypto space. When you stake tokens you are not able to sell them until you unlock them. This period could be weeks, months or years, depending on the protocol rules. With staking, assets can not be sold anymore and this will usually help the supply to get lower and the price to increase. This is not always the case. Staking can be used as well to have more control over the capacity of a network, meaning to become a validator/node or to receive vote power. By staking your tokens you could also receive new tokens with the same value that can be used in decentralizate financial applications in the native protocol or another ones. 

Using Stargate Finance for locking your STG tokens will give you a new token, veSTG, the unit of Stargate governance voting power. Stargate is governed entirely by Stargate token holders via voting escrow.  

• Adding Liquidity 

         Anyone can add liquidity into a pool and become a liquidity provider(LPs). To add liquidity you just need to have some tokens, you search for a pool on a protocol and you put some tokens there. You will also receive some interest for the funds you provided into that pool. Depending on the amount you choose to add, you will receive a corresponding percentage of the total fees that borrowers paid to the protocol.

Borrowers are the consumers that use the tokens that exist in a pool. In order to have this liquidity many Liquidity Providers should exist.

Earning stablecoin rewards could have never been easier than by adding liquidity to a pool on Stargate Finance Omnichain. With each transfer, you get more of this rewards. If you add liquidity you become a lender to the protocol so you receive a percentage of fees revenue and also governance tokens that provide voting power, so, in the Stargate case, STG tokens.

• Yield farming 

        Yield Farming is a great way to make some passive income using decentralized financial functionalities that a protocol provides. So some called pools exist. Pools are just some vaults of the protocol where users' tokens are held if they want it. Pools are created using smart contracts (lines of codes). If you put some tokens into a pool, you lock them, meaning you increase the liquidity of the pool. More tokens, more liquidity. A high liquidity is always a good sign. If a big number of tokens exist in the pool, more users can interact with them. The goal of the liquidity pools is to offer users a simple way to do financial activities like lending or borrowing without going to a bank.

A borrower takes funds from the liquidity pool, so this is the reason liquidity is needed. The borrower puts a collateral in the pool and also pays interest

As a LP you can also increase your interest with yield farming. This is a great way to make some passive income, because you are going to receive an annual interest on your tokens than can be compounded, meaning profits are reinvested into the pool (APY: annual rate charged) or not ( APY). The annual interest is always changing depending on the number of tokens that are deposited into the pool.

As a yield farmer, the protocol is paying you a proportion of the interest gained. 

!Yield Farming is more risky than just adding liquidity, because you can face impermanent lose (when would have been better to just hold your tokens instead of locking them in the pool, because selling them could have bring you profits), smart contract problems or insolvency.

Important aspects of Stargate Finance operations

Now you know the opportunities Stargate Finance offers, but which are the tokens and networks you actually interact with, you may wonder.

1. Blockchain Networks:

• Ethereum 
• Matic (Polygon)
• Avalanche
• Arbitrum 
• Optimism 
• BNB Chain (Binance)
• Fantom 

2. Tokens and Coins:

• ETH
• USDC
• USDT
• STG
• BUSD

As you already seen, all of these are stablecoins. Stablecoins are known for their stability, security and importance in Defi. They have a high coleration because all are pegged to the US dollar (their value should always be equal to 1 dollar) and this future is very needed in DeFi.

If you are looking for strong investments that give calculated risk, Stargate Finance is the right place to find them. 

Stargate Finance tokenomics 

As you can see there are some good points in the tokenomics, that I want to point on some specific ones: the team allocation is not high, so no much worries that they can just dump the project, the Release Schedule is happening gradually and the interaction with well known networks. 

In short:

Stargate finance is a unique protocol with a new algorithm that aims to increase cross-chain composability and scalability. Users no longer have to bridge assets multiple times to acquire native assets. Liquidity Providers can now achieve high capital efficiency into a single-side pool while collecting fees from all incoming transfers without worrying about the source of chain.  

Stargate Finance opens doors to the consumers to take part in this revolution, to increase the power of Decentralized Financial Applications and helps simple users to benefit from the unlimited opportunities the crypto space brings.

A high level of connectivity, interoperability is offered by Starget Finance, in such a way users are saving time and are improving their DeFi activities.

Simplicity, value and security are what you get interacting with Stargate Finance. Nice fundamentals and strong technical functions bring you protection and opportunities to start investing now in DeFi.

Stargate Finance really looks like a strong project, don't you think?

If you like to learn more about Stargate Finance protocol do not hesitate to access the official site at: stargate. 

Just connect your wallet and start interacting with DeFi!

This is not a financial advice, just a view about the potential of a new project in DeFi!

For more crypto info, you can visit my twitter: Elena (@CatalinaDidita) / Twitter