Stargate vs cBridge: Liquidity Design

Single pool per asset across all chains (e.g., one USDC pool). This enables:

• Instant Guaranteed Finality: Transactions are atomic; you get funds on the destination chain or the transaction reverts.
• Optimal Capital Efficiency: Liquidity isn't siloed, reducing the TVL needed to support the same volume.
• Native Yield for LPs: Liquidity providers earn fees from all chains in one pool.

Trade-off: Requires a sophisticated Delta Algorithm to manage imbalances, which can be complex to bootstrap and secure.

Native token standard for seamless cross-chain composability. This matters for protocols launching omnichain tokens (e.g., LayerZero Labs' own STG).

• Preserves Native Properties: Tokens move as the same contract address on every chain, crucial for DeFi integrations.
• Eliminates Wrapping: No need for canonical bridges or wrapped assets, reducing user friction and security surface.
• Protocol-Led Innovation: Tightly integrated with the LayerZero messaging layer for a cohesive developer experience.

Independent liquidity pools on each chain, connected via Celer's State Guardian Network (SGN). This enables:

• Permissionless Liquidity Provisioning: Anyone can become a liquidity provider (LP) on any supported chain.
• Flexible Fee Models: LPs and node operators can set dynamic fees based on market conditions.
• Resilience: No single point of failure for liquidity; local pool depletion doesn't halt the entire network.

Trade-off: Lower capital efficiency as liquidity is fragmented, and users must find routes with sufficient local liquidity.

Combines arbitrary message delivery with token transfers in one transaction. This matters for complex cross-chain actions (e.g., swap-and-bridge).

• Composability with Celer IM: Enables "bridge and do something" calls, like depositing into a lending protocol on arrival.
• Developer Flexibility: Separates the liquidity layer from the messaging layer, allowing for more customized integration patterns.
• Multi-Hop Routes: Can route through intermediate chains to find the best price or liquidity, similar to a DEX aggregator.

Single Pool Per Chain: A shared liquidity pool on each supported chain (e.g., Ethereum, Arbitrum). This creates deep, fungible liquidity for major assets like USDC, ETH, and USDT.

Key Advantage: Enables instant guaranteed finality for users. Once a transaction is confirmed on the source chain, the destination funds are guaranteed, eliminating slippage uncertainty. This is critical for high-frequency trading and arbitrage bots.

LP Token Integration: Liquidity providers receive Stargate LP tokens (e.g., S*USDC), which can be farmed or used as collateral in DeFi protocols like Aave or Compound on their native chain.

Key Advantage: Unlocks capital efficiency for LPs. Funds aren't idle; they generate yield while facilitating cross-chain transfers. This attracts more liquidity, creating a virtuous cycle for the protocol's depth.

Peer-to-Peer Liquidity Network: Relies on a network of independent cBridge nodes (LPs) who stake CELR and provide capital on specific routes (e.g., USDC from Arbitrum to Polygon).

Key Advantage: Enables extreme asset and chain flexibility. Nodes can bootstrap liquidity for any asset on any EVM/L2 chain quickly, making cBridge superior for long-tail assets and new chain launches where Stargate pools may not exist.

Node-Determined Pricing: Each cBridge node sets its own transfer fees and exchange rates based on local market conditions and capital availability.

Key Advantage: Creates a competitive, market-driven environment. For high-volume, established routes, this can drive fees down. However, for less liquid routes, users may face higher slippage or fees, requiring them to compare nodes. This model is optimal for LPs seeking to maximize returns on niche corridors.