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Stargate proposes to become a provider for Aave Portals, enabling Aave users to borrow unbacked tokens on other chains, with Stargate managing the transfer and repayment of collateral. The proposal, which has passed initial checks, involves users depositing a supported asset, Stargate using a LayerZero message to release the asset on the destination chain, and the Stargate Contract Wrapper being approved for the BRIDGE role to mint and re-back tokens.
The discussion revolves around a proposal by Stargate to become a provider for Aave Portals, a move that has already passed a temperature check and snapshot vote. The integration, if approved, would enable Aave users to borrow unbacked tokens on other chains, with Stargate managing the transfer and repayment of collateral. This is aimed at enhancing the omnichain user experience and facilitating more efficient cross-chain fund transfers1.
Stargate, currently the most widely used bridge in the crypto space, is of the view that aligning with the Aave DAO would bolster its mission of being a robust cross-chain liquidity transfer layer. The proposed architecture involves users depositing a supported asset (USDC, USDT, or ETH) and choosing the destination chain. Stargate would then employ a LayerZero message to release the asset on the destination chain from Aave, while concurrently bridging the underlying native asset via its traditional liquidity transfer mechanism1.
For this to work, the Stargate Contract Wrapper would need to be approved for the BRIDGE role as per the Portal documentation. This would empower the contract to mint unbacked tokens and re-back them once the corresponding value arrives at the destination chain1.
The discussion is now moving towards receiving and incorporating feedback from the community and technical teams, migrating ARFC to Snapshot for off-chain voting, and if the response is positive, creating and publishing an AIP for on-chain deployment1. Stargate has also invited Eboado and Sakulstra to provide their insights on the proposal2.
Posted 6 months ago
Last reply 4 months ago
Summary updated 2 months ago
Last updated 06/12 00:43