stargatefi

Background

Currently Stargate has protocol owned liquidity across each of the original seven chains it deployed on. These are Ethereum, Avalanche, Polygon, Fantom, BNB Chain, Optimism and Arbitrum. Each liquidity pair sits in a dex, providing liquidity to trade STG and earning fees from trades. In the past proposal “PancakeSwap Farm Proposal”, the Stargate DAO ratified moving $2 million of POL to PancakeSwap (https://snapshot.org/#/stgdao.eth/proposal/0xae1ebaebd42f44483c06cb0e8e7cdbc1f5aca52843b27017132ab8dbd8ef9158).

Proposal

PancakeSwap is requesting that Stargate move an additional $5m of POL (protocol owned liquidity) to PancakeSwap on Ethereum. This would result in $7m of total POL residing on PancakeSwap on Ethereum (the original $2M and an additional $5M of in this proposal). In return PancakeSwap will give Stargate an average of a 7.5% or higher APR, based on $7M of total TVL, paid in CAKE in emissions for the additional LP moving to PancakeSwap.

The PancakeSwap team will also continue to work to promote Stargate through their ecosystem, onboarding new users to Stargate. This aligns Stargate with a large and engaged community of DeFi users.

Execution

$5m of POL will be removed from the Curve LP pool and moved to PancakeSwap on Ethereum. Once moved, additional emissions for this LP will be enabled by PancakeSwap providing an APR of at least 7.5% to the total TVL providing by the Stargate DAO in that pool. If the emissions drop below 7%, Stargate will reserve the right to remove the lp from PancakeSwap and return it to a platform where the APR is highest at that point.

Success

If successful this proposal will result in a higher APR paid to Stargate in return for where it holds lp. This will allow Stargate POL to continue to grow more quickly, reducing the need for emissions and building a more robust liquidity layer.