Stargate Finance Token Soars After Trader Joe Partnership
• Stargate Finance’s native STG token surged 13% over the past 24 hours following its announced plan to team up with Avalanche-based decentralized exchange Trader Joe.
• The proposal to reissue the token and airdrop it to all STG holders was passed by the Stargate DAO’s community due to concerns about protocol-owned liquidity (POL) and STG holder security stemming from its entanglement with Alameda Research.
• This partnership with Trader Joe means that Stargate will support the increasingly popular JOE token, without requiring Trader Joe to maintain a liquidity pool on the platform.
Stargate Token Surges Following Partnership With Trader Joe
The native STG token of cross-chain bridge protocol Stargate Finance has surged 13% in the past 24 hours following its announced plan to team up with Avalanche-based decentralized exchange Trader Joe. This partnership will unlock omnichain fungible tokens and support the increasingly popular JOE token, without requiring Trader Joe to maintain a liquidity pool on the platform.
Security Concerns Prompt Proposal To Reissue Token
The proposal for a token re-issuance and airdrop of STG tokens to all holders was passed by the Stargate DAO’s community due to security concerns around an entanglement with Alameda Research, the trading arm of disgraced crypto exchange FTX. On March 17, 2022, Alameda purchased 10% of total STG supply, then committed to lock these tokens until March 2025 but recent transfers have revealed that “Alameda does not have full control of its wallets” and that malicious actors may be misappropriating funds.
STG Up 50% In Past 7 Days
Following this proposal passing, STG has recently climbed from roughly 60 cents a day ago to 92 cents according to crypto data aggregator CoinGecko; it has risen about 50% in the past seven days and 150% this year outperforming most altcoins during this digital asset rally.
LayerZero Integration Boosts Multichain Support
On Monday, Trader Joe announced its integration with LayerZero which makes JOE a multichain token able to be sent between blockchains. This integration further strengthens multichain support for both parties involved in the partnership; allowing them access new markets while mitigating risk associated with centralized exchanges.