The Stargate community is proposing to remove the Fantom USDC pool to mitigate risk

Stargate, the LayerZero cross-chain bridge protocol, has responded to the recent “force majeure” incident that affected Multichain and the stability issues surrounding each USDC, Fantom’s main USDC asset.

To address these concerns and protect the ecosystem, Stargate has submitted a comprehensive proposal and initiated a single-choice voting system for risk mitigation and ecosystem integrity. The voting period for the proposal began on May 27, 2023 at 3:47 a.m. and ends on May 30, 2023 at 3:47 a.m.

As part of the proposal, the first step includes stopping STG emissions on the Fantom pools. This action by Stargate is intended to temporarily suspend emissions and mitigate potential disruptions due to the uncertainties associated with Multichain. Emission is the rate at which new coins are created and released.

To date, a total of 1.7 million verified members of the Stargate community have voted in favor of the proposal. This figure shows that approximately 96.55% of the community agrees with the proposal.

Subsequently, Stargate plans to isolate the Fantom pools from all other pools in the network, to prevent any possible contamination or negative impact on the wider Stargate ecosystem. Currently, the deposited liquidity provider (LP) in this pool is approximately $11.4 million. The Fantom pools are effectively segregated from other pools within the Stargate network.

To improve ecosystem protection and address potential issues related to a USDC on Fantom, the proposal recommends deleting and undoing any USDC POL through Multichain. In addition, Stargate suggests exploring alternative bridging options for Fantom users, such as using Hydra.

Related: Stargate Foundation advises DAO not to reissue STG tokens

On May 25, Binance declared a temporary halt to deposits for bridged tokens related to Multichain. Along with the technical measures, Stargate recognizes the importance of facilitating a seamless transition for its liquidity providers. The proposal highlights the importance of whitelisting current LPs so they can exchange their LP for alternative chains.

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