LayerZero Completes $110M Stargate Acquisition via Token Swap

LayerZero Foundation has finalized its $110 million acquisition of Stargate Finance (STG) through a token swap, following a 95% approval vote by Stargate DAO members [1]. This strategic move solidifies LayerZero’s position in the cross-chain finance sector, as it integrates Stargate’s capabilities under its own ecosystem. STG token holders are now able to exchange their holdings for LayerZero’s ZRO token at a fixed rate of 1 STG to 0.08634 ZRO [1]. This swap replaces STG as a standalone token, aligning it with LayerZero’s long-term integration strategy [1].

The acquisition comes amid competitive bidding in the DeFi space, with the Wormhole Foundation having previously proposed a $120 million cash offer that was ultimately unsuccessful [1]. While some market participants view the deal as a strengthening of LayerZero’s cross-chain infrastructure, others, including the Wormhole Foundation, argue that the acquisition undervalues Stargate’s potential [1]. Opinions remain divided, with social media platforms reflecting a spectrum of views on the deal’s long-term implications [1].

As of August 24, 2025, STG was trading at $0.18, with a 0.74% decline over the previous 24 hours. The token’s market cap stood at around $116.59 million, while recent trading volumes saw a significant increase of 174.15% [1]. Despite short-term volatility, the overall market sentiment appears cautiously optimistic about the acquisition’s potential to reshape cross-chain asset management strategies [1].

Industry observers, including the Coincu research team, note that this acquisition reflects an emerging trend in DeFi mergers—favoring integration and long-term collaboration over immediate liquidity options [1]. This strategy may influence future regulatory frameworks surrounding cross-chain protocols and asset transfers [1]. Bryan Pellegrino, Co-founder and CEO of LayerZero Foundation, emphasized the significance of the DAO’s support, calling it a “strong commitment to long-term integration of their cross-chain capabilities” [1].

The deal is seen as part of a broader evolution in the DeFi landscape, where protocol consolidation and cross-chain integration are becoming key themes. While the acquisition price of $110 million remains a point of discussion, it underscores the increasing strategic value of cross-chain infrastructure in a rapidly evolving decentralized finance ecosystem [1].

Source: [1] LayerZero Completes $110M Stargate Acquisition with Token Swap (https://coinmarketcap.com/community/articles/68ab0f1803dc01324d841eb1/)