In response to the incident where “Twitter users claimed that Stargate seemed to have a bug and a whale repeatedly added and removed liquidity for arbitrage”, the cross-chain bridge Stargate community initiated a proposal to “upgrade the Stargate EqReward design”.

According to the proposal, the discount given to rebalancing transfers will be removed, making them pay less protocol fees (keeping the protocol fee for all transfers at 6-10 bps); the feelibrary will be updated so that the maximum eqReward allocated is the maximum protocol fee for that path (6-10 bps), which means that rebalancing protocol users will receive 0 fees but will not receive additional rewards for doing so.

It is reported that the above update will not have a substantial impact on the Stargate core protocol. By modifying the feelibrary to only return fees instead of providing rewards, users will not be able to obtain additional eqRewards, allowing the protocol to retain more eqRewards and incentivize the continuous balance of Stargate. (Planet Daily)