LayerZero has announced its acquisition of Stargate Finance for approximately $120 million in ZRO tokens. This decision received strong backing from the Stargate DAO.
Deal Details
LayerZero has successfully acquired Stargate Finance for about $120 million, primarily using ZRO tokens. This strategic acquisition follows decisive approval from Stargate's DAO and stands out against competitive bids.
Market Impact and Tokens
Following the announcement of the deal, both ZRO and STG tokens observed a significant surge, climbing by 26% and 20%, respectively. This reflects considerable interest and support from the crypto community.
Effects on DeFi Space
The transaction entails significant financial implications, with Stargate stakers receiving 50% of the protocol's revenue for six months. The remainder will support ZRO token buybacks, enhancing the liquidity and economic stability of LayerZero's ecosystem.
This acquisition consolidates approximately 85% of cross-chain transaction volume, indicating major shifts in how liquidity pools are managed across networks and highlighting current trends in decentralized finance.
