Is Stargate Finance Safe?
Risk Grade: C+ (40/100)
Stargate Finance is rated as elevated risk — multiple novel mechanisms and notable interaction risks.
Moderate risk — most-used bridge with deep liquidity, but the 2-of-2 validator trust model and centralized post-acquisition governance are serious concerns
A cross-chain bridge that lets you move tokens between blockchains using shared liquidity pools, holding $345M in deposits. LayerZero acquired Stargate for $110M in 2025, dissolving the community DAO and centralizing governance. Its C+ grade reflects serious bridge security risks and the loss of decentralized oversight.
TVL
$8M
Mechanisms
7
Interactions
6
Value Grade
C+
Key Risks for Stargate Finance Users
Two validator groups (DVNs) must both approve every cross-chain transfer. If both are compromised or collude, attackers can forge transfers and steal the entire $345M in liquidity pools
LayerZero bought Stargate and shut down the community DAO. One foundation now controls bridge settings, validator choices, and fee structures with no community vote required
The reward system that keeps pools balanced across chains can be gamed. An attacker who finds the right sequence of trades can systematically drain pool liquidity for profit
Top Risk Factors
- •DVN validator collusion (both whitelisted DVNs) can submit fraudulent messages and steal bridged funds
- •LayerZero acquisition dissolved Stargate DAO, centralizing governance under LayerZero Foundation
- •Unified liquidity pools across chains can be drained through algorithm manipulation of equilibrium rewards
Risk Score Breakdown
Stargate Finance's highest risk area is Interaction Severity (12/20). Here's how each dimension contributes to the overall 40/100 score:
Read the Full Stargate Finance Risk Report
This protocol has 2 collapse scenarios. 2 critical and 2 high-severity interaction risks identified. See the full mechanism classification, interaction matrix, and deep-dive recommendations.
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