LayerZero Completes $138M Stargate Acquisition Amid 94% DAO Approval

LayerZero has successfully completed its acquisition of Stargate Finance, with the deal approved by the Stargate DAO, marking a significant development in the cross-chain interoperability sector. The acquisition, valued between $110 million and $138 million, involves the retirement of STG tokens and the issuance of ZRO tokens in a 1:0.08634 ratio to existing STG holders. The move consolidates Stargate’s operations under LayerZero’s ecosystem, dissolving the Stargate DAO in the process [10].

The deal emerged amid fierce competition, with alternative bids from major players such as Wormhole, Axelar, and Across. Wormhole had previously raised concerns over the valuation, suggesting that LayerZero’s offer underestimated Stargate’s potential. Despite this, Stargate DAO members overwhelmingly approved the acquisition, with 94% of votes in favor, finalizing the decision on August 24, 2025 [10].

To address initial concerns from STG token holders about the loss of yield benefits tied to the veSTG model, LayerZero adjusted its proposal. It committed to allocating 50% of Stargate’s revenue to veSTG holders for six months post-acquisition, with the remaining half and excess profits directed toward ZRO buy-and-burn initiatives. This adjustment aimed to preserve short-term incentives while aligning with long-term governance goals [10].

LayerZero has positioned the acquisition as a strategic step to expand Stargate beyond cross-chain bridging and stablecoin services into a broader financial infrastructure platform. The LayerZero Foundation outlined plans to introduce advanced tools such as swaps and vaults, transforming Stargate into a central hub for cross-chain financial activities [10].

In the immediate aftermath, both STG and ZRO tokens saw increased demand, with STG rising to $0.1795 and ZRO reaching $2.08. Both tokens experienced over 300% growth in 24-hour trading volume, signaling market optimism. However, analysts caution that ZRO’s long-term performance will depend on how effectively LayerZero executes its roadmap and integrates Stargate’s operations [10].

The acquisition reflects a growing trend in the blockchain industry, where strategic consolidation is becoming a key strategy for scaling and differentiation. With Stargate now under its umbrella, LayerZero aims to reinforce its position as a leading omnichain infrastructure provider, navigating the competitive landscape with a newly expanded ecosystem and user base [10].

Source:

[1] title1.............................(https://www.ainvest.com/news/wormhole-challenges-layerzero-0-1675-stargate-buyout-offer-2508/)

[2] title2.............................(https://xangle.io/en/insight/events/68abada6fb2f18c7e70ad334)

[3] title3.............................(https://www.ainvest.com/news/stargate-dao-approves-138m-layerzero-acquisition-cross-chain-shift-2508/)

[4] title4.............................(https://coinfomania.com/layerzero-stargate-acquisition-110m/)

[5] title5.............................(https://invezz.com/news/2025/08/25/starget-dao-approves-layerzeros-stg-acquisition-deal/)

[6] title6.............................(https://www.coingabbar.com/en/crypto-currency-news/layerzero-wins-stargate-takeover-with-94-dao-approval?srsltid=AfmBOopo_4zbZNI8UmgjRSKOlMhellA6gAL9EzkUfqbWVIMD0EpcGHac)

[7] title7.............................(https://m.economictimes.com/crypto-news-today-live-25-aug-2025/liveblog/123489092.cms)

[8] title8.............................(https://www.fastbull.com/news-detail/alleged-nda-ties-ripple-jpmorgan-and-blackrock-to-news_6100_0_2025_3_9092_3/6100_SOL-USDT)

[9] title9.............................(https://coincu.com/news/layerzero-stargate-acquisition-zro-swap/)

[10] title10...........................(https://www.fxempire.com/crypto/matchy)