The cross-chain bridge Stargate has initiated a proposal vote to address the issue of arbitrage using its distribution mechanism

ChainCatcher message, in response to community feedback regarding the issue of large holders using the Stargate allocation mechanism for arbitrage, the cross-chain bridge Stargate community is currently voting on the "Upgrade Stargate EqReward Design" proposal, which has a current support rate of 92.6%. The voting will end on May 31.

The proposal requests: (1) to eliminate the discount given for rebalancing transfers, resulting in lower protocol fees (keeping all transfer protocol fees at 6-10 bps); (2) to update the feelibrary so that the maximum allocated eqReward is the maximum protocol fee for that route (6-10 bps), meaning that rebalancing protocol users will incur 0 fees but will not receive additional rewards for doing so.

By modifying the feelibrary to only refund fees instead of providing rewards, users will not be able to obtain additional eqRewards, allowing the protocol to retain more eqRewards and incentivizing the continuous balance of Stargate. (Source link)