LayerZero Finalizes $110M Stargate Acquisition in Major DeFi Deal

LayerZero has finalized a $110 million acquisition of Stargate, securing one of the most significant deals in the decentralized finance (DeFi) sector to date. The acquisition received overwhelming support from Stargate’s Decentralized Autonomous Organization (DAO), with 95% of voters approving the proposal after a competitive bidding process. Starting August 25, STG token holders will begin swapping their tokens for ZRO, marking a major realignment of incentives and governance between the two projects [1].

The DAO vote, held in mid-August, saw over 15,000 addresses participate, collectively casting over 7.5 million veSTG tokens. This strong community backing underscored a preference for LayerZero’s long-term strategic vision over immediate financial offers from competing bidders such as Wormhole, Axelar, and Across. Notably, Wormhole submitted a $120 million cash offer, but the Stargate community ultimately selected LayerZero for its shared mission and integrated development plan [2]. The decision highlights the growing influence of DAOs in shaping the direction of major DeFi projects.

Under the terms of the deal, each STG token will convert to 0.08634 ZRO. In addition, stakers will receive half of Stargate’s protocol revenue for six months, with the remaining half used to buy back ZRO tokens. This dual approach is designed to reward current holders while also supporting the new token’s value through repurchase mechanisms [3]. The structure signals a clear intent to align stakeholder interests and reinforce the financial stability of the merged entity.

The acquisition also marks a return to origins for LayerZero. Stargate was originally developed by LayerZero in 2021 before being spun off as a separate DAO in 2022. By reuniting the two entities, the firms aim to streamline governance, accelerate product development, and improve cross-chain interoperability. This move is expected to foster a more cohesive and efficient ecosystem, potentially enhancing the platform’s long-term growth prospects [4].

The deal reflects a broader trend in the DeFi space toward consolidation and collaboration. As demand for seamless cross-chain transactions grows, projects are increasingly opting to merge or partner rather than operate in isolation. While some community members have argued that Stargate’s valuation may exceed the $110 million price tag—considering its robust treasury, high transaction volume, and substantial total value locked—the community’s decision ultimately prioritized strategic alignment over short-term gains [5].

The integration process will begin with a token swap on August 25 and is expected to be completed by early 2026. During this period, users can expect enhanced cross-chain experiences, including faster transfers, simplified operations, and improved yield opportunities. For investors, the acquisition represents a strategic bet on a DeFi future defined by collaboration and integration. Success will depend on LayerZero’s ability to deliver on these promises while maintaining strong community engagement and trust [6].

The LayerZero-Stargate deal serves as a pivotal moment in the evolution of the DeFi landscape, illustrating the power of community-driven governance and the potential for cross-chain innovation. As the integration progresses, the market will closely monitor whether this bold move translates into sustainable value creation for all stakeholders.

Sources:

[1] LayerZero Stargate Acquisition Wins $110M Deal Backed ... (https://coinfomania.com/layerzero-stargate-acquisition-110m/)

[2] LayerZero wins $110M Stargate acquisition deal (https://crypto.news/layerzero-110m-stargate-acquisition-stg-vote-2025/)

[3] ​​Wormhole Pushes $120M Cash Bid to Rival ... (https://www.mexc.com/en-GB/news/wormhole-pushes-120m-cash-bid-to-rival-layerzeros-stargate-deal/71451)

[4] Metaplanet Redeems ¥3B Bonds, Signals Ongoing Bitcoin ... (https://coinfomania.com/metaplanet-redeems-%C2%A53b-bonds-signals-ongoing-bitcoin-strategy/)

[5] wormhole vs LayerZero: The Battle for @StargateFinance ... (https://x.com/kroko_bams/status/1959220359376371725)

[6] Stargate Finance Price, STG Price, Live Charts, and ... (https://www.coinbase.com/en-gb/price/stargate-finance)