LayerZero Acquires Stargate DAO in $110M–$120M Token Deal

Generated by AI AgentCoin World
Monday, Aug 25, 2025 8:01 am ET1min read
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Aime RobotAime Summary

- LayerZero Labs acquired Stargate Finance in a $110M–$120M all-token deal, the largest DAO buyout in crypto history, with 95% STG token holder approval.

- Rivals submitted last-minute bids, including Wormhole’s $120M USDC offer, signaling a shift toward fiat-backed DeFi acquisitions.

- The acquisition includes a six-month revenue-sharing commitment to veSTG holders and merges Stargate’s liquidity with LayerZero’s tech.

- This deal highlights DeFi consolidation trends but raises concerns about decentralized governance and long-term ecosystem impacts.

LayerZero Labs has finalized its acquisition of Stargate Finance, marking one of the largest decentralized autonomous organization (DAO) buyouts in crypto history. The deal, valued between $110 million and $120 million, was executed through an all-token offer, with LayerZero settling the entire amount in its native ZRO tokens [1][2][3]. The acquisition received overwhelming support, with 95% of STG token holders voting in favor during the DAO approval process [3][4].

The deal came amid intense competition from other major cross-chain protocols. Wormhole, Axelar, and Across all submitted last-minute bids, with Wormhole notably proposing a $120 million

USDC
offer—a rare move that signaled a potential shift in DeFi acquisition strategies toward fiat-backed assets [5]. Despite these challenges, LayerZero’s all-token structure proved more appealing to the Stargate community, reflecting ongoing preferences for on-chain and decentralized transaction mechanisms.

As part of the acquisition terms, LayerZero agreed to continue distributing half of Stargate’s revenue to veSTG token holders for six months, a move that helped secure community backing and demonstrated a commitment to maintaining tokenholder incentives. Moving forward, the Stargate DAO will be dissolved, and former STG token holders will transition to ZRO, LayerZero’s native token, effectively transferring governance rights to the new entity [1][3].

The acquisition is expected to enhance LayerZero’s capabilities in cross-chain interoperability. By integrating Stargate’s user base and liquidity infrastructure with LayerZero’s existing technology, the combined project is positioned to expand its influence across major blockchain networks. Bryan Pellegrino, CEO of LayerZero Labs, described the move as a “milestone for omnichain interoperability,” emphasizing the strategic value of Stargate’s user base and revenue streams [3].

Industry observers note that the deal reflects a growing trend of consolidation in the DeFi space. As protocols seek to scale through strategic acquisitions, the LayerZero–Stargate transaction sets a potential precedent for future M&A activity in the decentralized ecosystem. However, some stakeholders have raised concerns about the speed of the process and its long-term implications for decentralized governance and financial ecosystems [1].

Source:

[1] Coindoo - LayerZero Secures $120M Deal to Absorb Stargate DAO

(https://coindoo.com/layerzero-secures-120m-deal-to-absorb-stargate-dao-amid-rival-bids/)

[2] Blockchair - LayerZero Wins Stargate Acquisition in 4-Way Bidding War

(https://blockchair.com/news/layerzero-wins-stargate-acquisition-4-way-bidding-war--088e66f95aa2c85e)

[3] Coincu - LayerZero Foundation Acquires Stargate with 95% Approval

(https://coincu.com/news/layerzero-stargate-acquisition-zro-swap/)

[4] The Economic Times - Stargate DAO Approves LayerZero's Acquisition

(https://m.economictimes.com/crypto-news-today-live-24-aug-2025/liveblog/123477064.cms)

[5] Binance - Wormhole's $120M USDC Offer for Stargate

(https://www.binance.com/en/square/profile/coinfomania)