LayerZero to Acquire Stargate in $110M Deal ZRO Up 18%

Generated by AI AgentCoin World
Sunday, Aug 10, 2025 10:32 pm ET1min read
ETH
--
STG
--
Aime RobotAime Summary

- LayerZero Foundation proposes $110M acquisition of its 2022 cross-chain bridge Stargate, retiring STG tokens for ZRO at 1:0.08634.

- The move aims to unify the ecosystem under a single developmental framework, accelerating both projects' roadmaps while dissolving Stargate's DAO.

- Market reacted positively (STG +12%, ZRO +18%), but community debates valuation concerns despite LayerZero insiders abstaining from voting.

- A seven-day public question period precedes final approval, with the deal potentially reshaping governance and omnichain integration strategies.

The LayerZero Foundation has proposed an acquisition of

Stargate
, a cross-chain bridge it originally launched in 2022, in a deal valued at approximately $110 million [1]. Under the terms, the native
STG
token will be retired and exchanged for ZRO, LayerZero’s token, at a fixed rate of 1 STG for 0.08634 ZRO. At the time of the announcement, this equated to $0.1675 per STG and $1.94 per ZRO [2]. The Stargate decentralized autonomous organization (DAO) will be dissolved, and the protocol will operate directly under the LayerZero Foundation. The move aims to streamline operations and unify the LayerZero ecosystem under a single developmental framework [2].

Bryan Pellegrino, co-founder and CEO of LayerZero Labs, emphasized that the integration would enable a “single stack” for developers and partners within the ecosystem [2]. He stated that the acquisition is intended to accelerate both Stargate’s and LayerZero’s development roadmaps, allowing for a more cohesive and efficient infrastructure [1]. Stargate, which has facilitated over $70 billion in cross-chain volume since its launch, has seen its STG token fall significantly from a peak of $4.14 to under $0.20 [2].

The market responded positively to the news, with STG rising about 12% to $0.188 and ZRO climbing around 18% to $2.33, increasing the implied deal value to approximately $127 million [2]. However, reactions within the Stargate community have been mixed. Some members argue that the offer undervalues STG, given its historical performance and potential for future growth [2]. Pellegrino acknowledged these concerns but stated that the final decision rests with the DAO and confirmed that all LayerZero insiders holding STG would abstain from the vote [2].

The proposal is open for public questions for seven days before a formal decision is made [2]. If approved, the acquisition will mark a pivotal shift in the governance and strategic direction of Stargate, consolidating its operations under the LayerZero Foundation and reinforcing the broader vision of an integrated omnichain platform [1].

Source:

[1] title1.............................(https://www.ainvest.com/news/ethereum-news-today-layerzero-acquire-stargate-110m-deal-zro-15-2508/)

[2] title2.............................(https://www.cryptotimes.io/2025/08/11/layerzero-foundation-moves-to-acquire-stargate-in-110m-deal/)