LayerZero Labs has completed the acquisition of Stargate Finance after receiving 95% approval from STG token holders, marking one of the largest DAO acquisitions in crypto history.
DAO Level Deal
The acquisition of Stargate Finance is valued between $120 million and $138 million and was approved by 95% of STG token holders. Despite last-minute bids from competitors like Wormhole, Axelar, and Across, Stargate DAO decided to proceed with LayerZero's offer.
Key Governance Changes
With the acquisition of Stargate, the DAO governance structure will change: the Stargate DAO will dissolve, and STG token holders will transition to the LayerZero token (ZRO). Revenue distributions to veSTG holders will occur over a six-month period.
Criticism and DeFi Implications
Industry representatives express dissatisfaction with the process's transparency and predict that such mergers could set new precedents for financial protocol consolidations. Analysts note that this may have long-term impacts on decentralized finance ecosystems.
LayerZero's acquisition of Stargate Finance may significantly alter the cross-chain interoperability landscape and spark discussions on future implications for decentralized finance.
