LayerZero has officially completed the acquisition of Stargate Finance with nearly 95% approval from Stargate DAO. This event solidifies its position in the realm of cross-chain technologies.
Stargate DAO Approval
Stargate DAO has approved the acquisition of Stargate Finance by LayerZero, with nearly 95% of votes in favor. This integration brings cross-chain protocols under the LayerZero brand and includes a token swap from STG to ZRO.
Valuation and Deal Details
The acquisition is valued at approximately $110–$120 million and includes a token swap where 1 STG converts to 0.08634 ZRO. While Wormhole Foundation expressed interest, claiming Stargate was undervalued, the DAO's decision remained firm.
Expert Views on Market Impact
Stargate's acquisition by LayerZero bears resemblances to Yearn Finance protocol mergers, which initially led to volatility before stabilizing. Experts note that swift developer integration and positive community sentiment tend to stabilize affected markets after initial disruptions.
The LayerZero and Stargate Finance deal may lead to increased competition in the cross-chain market and reshape market dynamics, often accompanied by initial volatility followed by stabilization, as indicated by historical patterns.
