Is Stargate V1 Safe?
Risk Grade: B- (30/100)
Stargate V1 is rated as moderate risk — some novel mechanisms, generally well-understood.
Moderate risk — battle-tested bridge with clean security record, though LayerZero dependency and transition to V2 create ongoing considerations for V1 users.
Stargate V1 is the first cross-chain bridge built on LayerZero, enabling native asset transfers (USDC, USDT, ETH) across 80+ chains without wrapping. With ~$11M TVL in V1 pools, it pioneered the Delta algorithm for cross-chain liquidity management and charges a 6bps fee. The B grade reflects its clean track record and strong documentation, though LayerZero dependency and V1's legacy status as V2 scales present considerations.
TVL
$11M
Mechanisms
6
Interactions
5
Value Grade
C
Key Risks for Stargate V1 Users
Stargate depends entirely on LayerZero's messaging infrastructure — any LayerZero downtime directly affects all transfers
V1 is legacy infrastructure now that V2 has launched — security attention may increasingly focus on V2
STG token is being acquired by LayerZero (conversion to ZRO), creating transition uncertainty
Top Risk Factors
- •LayerZero messaging layer dependency — Stargate's cross-chain transfers rely on LayerZero's relayer and oracle network for message verification
- •Liquidity pool imbalances across chains can lead to delayed or failed transfers when destination pools are depleted
- •V1 is legacy infrastructure as V2 has launched — ongoing maintenance and security attention may decline
- •STG/veSTG governance concentration could allow large holders to direct protocol parameters
How Stargate V1 Compares to Peers
Stargate V1 ranks #3 of 24 Bridge protocols (top quartile — safer than most). At a risk score of 30/100, it's 13 points safer than the sector average of 43/100.
Adjacent peers: NEAR Intents (B, 27/100) is ranked just safer, and tBTC (B-, 30/100) is ranked just riskier.
See the full Bridge sector leaderboard or the Stargate V1 vs tBTC comparison.
Common Questions about Stargate V1
Plain-English answers based on Stargate V1's scores across Hindenrank's 8 risk dimensions. The highest-scoring (riskiest) dimension is Vitality Risk (9/10).
Has Stargate V1 ever been hacked or exploited?
Stargate V1 has a fairly clean operational history. The track record dimension scored 3/15, indicating minor or no significant incidents on record. A clean track record is a positive signal but it does not guarantee future safety, especially as protocol complexity grows.
How much money is at stake in Stargate V1?
Stargate V1 currently holds roughly $11M in user deposits. Smaller TVL means individual depositors carry a larger share of any loss event, and it can be harder to exit a position quickly during stress.
What's the worst-case scenario for Stargate V1?
Hindenrank has identified specific collapse scenarios for Stargate V1. The most prominent: "LayerZero Messaging Failure Strands Cross-Chain Transfers". The trigger condition is LayerZero infrastructure experiences extended downtime or compromise. Reading through the full scenario list on the protocol page is the single best way to understand the actual failure modes — generic "smart contract risk" is rarely the thing that takes a protocol down.
Is Stargate V1 regulated or insured?
Stargate V1 has low regulatory exposure on Hindenrank's framework (3/10). The protocol is structured in a way that minimizes counterparty and jurisdiction concentration, though regulatory risk in crypto can change rapidly. No DeFi protocol carries FDIC-style insurance — even with low regulatory risk, depositors are not protected in the way bank customers are.
What are the biggest red flags for Stargate V1?
Hindenrank's retail-focused risk audit flagged: Stargate depends entirely on LayerZero's messaging infrastructure — any LayerZero downtime directly affects all transfers V1 is legacy infrastructure now that V2 has launched — security attention may increasingly focus on V2 STG token is being acquired by LayerZero (conversion to ZRO), creating transition uncertainty
Should beginners deposit into Stargate V1?
Stargate V1 is rated B-, which is acceptable for users who understand the protocol's mechanism. Beginners should read the full risk breakdown and only deposit after they can articulate the top three failure modes. If you cannot explain how the protocol works, do not deposit.
How does Stargate V1 compare to safer Bridge alternatives?
Stargate V1 is one protocol in Hindenrank's Bridge coverage. The safest Bridge protocols on the leaderboard tend to share three traits: a long incident-free track record, conservative mechanism design, and high-quality public documentation. Compare Stargate V1 against the full Bridge ranking before committing capital.
For the full 8-dimension score breakdown, the radar chart, and dependency graph, see the Stargate V1 risk report.
Read the Full Stargate V1 Risk Report
This protocol has 2 collapse scenarios. 1 high-severity interaction risks identified. See the full mechanism classification, interaction matrix, and deep-dive recommendations.
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