LayerZero Offers $110M for Stargate Finance in Token Swap Deal

Generated by AI AgentCoin World
Monday, Aug 11, 2025 11:57 am ET1min read
STG
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Aime RobotAime Summary

- LayerZero proposes $110M acquisition of Stargate Finance via 1 STG = 0.086 ZRO token swap, dissolving the Stargate DAO.

- Future Stargate revenue will fund ZRO buybacks, with community voting on the deal via Snapshot after a week-long discussion.

- STG and ZRO tokens surged 20.2% and 27.9% post-announcement, reflecting market optimism about cross-chain synergy.

- The deal highlights DeFi consolidation trends, aiming to expand LayerZero's infrastructure while boosting Stargate's visibility.

The LayerZero Foundation has proposed a $110 million acquisition of

Stargate
Finance, a cross-chain token bridge platform, along with its native STG tokens. The offer includes a token swap rate of 1 STG for 0.086 ZRO, LayerZero’s native token, which is priced above the current $0.1444 backing of STG [1]. As part of the deal, the Stargate DAO will be dissolved, and future revenue generated by the platform will be used for ZRO buybacks [1]. The proposal is currently open for a week-long community discussion period and will be followed by a three-day voting period on the Snapshot platform [1].

In the wake of the announcement, both STG and ZRO tokens have seen notable price gains, rising by 20.2% and 27.9%, respectively [1]. This suggests that the market has responded positively to the news, perceiving the acquisition as a strategic move that could enhance the capabilities of both LayerZero and Stargate. The integration of Stargate into the LayerZero ecosystem is expected to provide the platform with the resources to expand beyond its role as a cross-chain bridge, potentially unlocking new use cases and functionality.

The transaction reflects a growing trend in the decentralized finance (DeFi) space, where larger platforms are consolidating smaller projects to scale operations and strengthen network effects. For Stargate, the deal could mean increased visibility and development support, while for LayerZero, it represents a strategic expansion of its cross-chain infrastructure. As the community reviews the proposal, key points of interest will include the token exchange rate, the dissolution of the Stargate DAO, and the allocation of future revenue to ZRO buybacks, which could impact token supply and value dynamics [1].

Stargate’s transition from an independent cross-chain bridge to a component of the LayerZero platform highlights the evolving structure of the DeFi ecosystem. The acquisition also underscores the importance of governance and community participation in major decisions, as the final outcome will depend on the outcome of the Snapshot voting process [1]. If approved, the transaction will mark a significant milestone for both projects and could influence the trajectory of cross-chain innovation in the broader blockchain industry.

Source:

[1] GeckoPulse: Stargate Returns to the Fold?

https://www.coingecko.com/learn/geckopulse-stargate-returns-to-the-fold