LayerZero has announced its acquisition of Stargate Finance for $120 million in ZRO tokens. The deal received a 95% approval from the Stargate DAO and aims to enhance cross-chain infrastructure.
Deal Between LayerZero and Stargate Finance
LayerZero has completed the acquisition of Stargate Finance for $120 million in ZRO tokens. This deal was overwhelmingly approved by Stargate DAO members with a support level of 94-95%.
Impact on Cross-Chain Ecosystem
The deal affects the cross-chain ecosystem by consolidating governance and potentially shifting market dynamics. Stargate Finance is migrating approximately $345 million in Total Value Locked (TVL) under LayerZero's infrastructure.
Market Reaction and Future of ZRO Tokens
Market participants should monitor potential volatility as ZRO tokens will unlock starting June 2025. This acquisition reportedly sets a precedent in the industry, emphasizing the importance of governance consolidation and cross-chain liquidity management.
The acquisition of Stargate Finance by LayerZero highlights a strategy of consolidating cross-chain liquidity and governance, which may lead to new technological advancements in this area.
