LayerZero Foundation Plans to Acquire Stargate Bridge for $110M!

LayerZero Foundation has made waves in the DeFi space with a bold $110 million acquisition proposal for the Stargate cross-chain bridge.

This strategic move aims to integrate Stargate into the LayerZero ecosystem, dissolve its DAO governance model, and replace STG tokens with LayerZero’s native token, ZRO.

The announcement sent STG prices surging by 12%, sparking debates among community members about the long-term benefits and fairness of the token swap.

Key Takeaways

• LayerZero proposes a $110 million acquisition of Stargate Bridge and its STG token.
• Plan includes dissolving Stargate DAO and transitioning governance to LayerZero’s ZRO token.
• STG price jumped 12% to $0.188 following the news.
• Token swap rate set at 1 STG = 0.08634 ZRO (~$0.1675 per STG).
• Mixed community response as the proposal undergoes a 7-day review.

Details of the Acquisition Proposal

According to the LayerZero Foundation, the plan involves:

• Buying out Stargate Bridge for $110 million.
• Shutting down Stargate DAO governance structures.
• Replacing STG tokens with ZRO tokens at a conversion rate of 1 STG = 0.08634 ZRO (valued at ~$0.1675 per STG).

Once approved, Stargate will no longer operate as an independent protocol. Instead, it will be fully managed under the LayerZero Foundation, aligning with its broader roadmap for cross-chain interoperability.

LayerZero emphasized the move will streamline decision-making and speed up feature rollouts, allowing Stargate’s technology to evolve faster within a unified ecosystem.

Read Also: How to Be Eligible and Claim the LayerZero (ZRO) Airdrop

Immediate Market Reactions

The market responded almost instantly to the news:

• STG token price rose 12% to $0.188 shortly after the announcement.
• 24-hour trading volume surged to $45.67 million, up more than 700%.
• Over the past week, STG recorded a 16% gain, despite being down 20% over the last 90 days.

These spikes suggest traders are betting on a short-term upside from the acquisition, though long-term holders remain divided.

Read Also: LayerZero Refutes Vulnerability Claims

Community Reactions: Mixed Sentiment

The Stargate DAO community now has a 7-day review window to deliberate. While some see the deal as a step toward stability and growth, others are unhappy with:

• The swap ratio, which they believe undervalues STG.
• The loss of DAO governance, reducing community influence.
• Concerns over whether ZRO will match STG’s previous performance.

Discussions on the DAO forum have highlighted the trade-off between faster innovation and reduced decentralization.

Stargate’s Role in the DeFi Ecosystem

Launched three years ago, Stargate has been one of the most heavily used cross-chain bridges, with over $70 billion in transaction volume.

Its protocol allows seamless asset transfers between multiple blockchains, playing a vital role in DeFi liquidity movement. LayerZero’s acquisition could bolster this function, integrating it more deeply with its interoperability stack.

Potential Industry Impact

If approved, the acquisition could trigger a ripple effect in the cross-chain and bridging sector:

• ZRO gains utility and a larger user base.
• More protocols may opt for centralized governance under strong parent organizations.
• Competing cross-chain bridges could explore mergers or partnerships to remain competitive.

This move reflects a broader trend of consolidation in DeFi, where strong ecosystems absorb independent protocols to streamline operations.

Read Also: LayerZero Unveils ZRO Airdrop Checker Amid Scandal

Final Thoughts

The LayerZero–Stargate deal could reshape the landscape of cross-chain interoperability. While it promises efficiency, faster development, and expanded utility for ZRO, it also raises concerns about governance and fair valuation for STG holders.

With the proposal still under review, the coming days will reveal whether the Stargate DAO community embraces this consolidation or resists losing its independence.

FAQ

What is the STG to ZRO swap rate in the LayerZero deal?

The proposed swap rate is 1 STG = 0.08634 ZRO, valued at roughly $0.1675 per STG.

How long will the Stargate DAO review the proposal?

The DAO has a 7-day review period to deliberate and vote on the proposal.

Why is LayerZero acquiring Stargate?

LayerZero aims to integrate Stargate into its ecosystem, streamline governance, and accelerate its roadmap for cross-chain services.

How has the market reacted so far?

STG price increased by 12% to $0.188, with trading volumes surging over 700% in 24 hours.