The LayerZero Foundation has proposed acquiring the cross-chain bridge Stargate and its native STG tokens for $110 million, marking one of the largest DeFi deals of the year.
Acquisition Proposal
Under the terms, STG tokens would be decommissioned and exchanged at a rate of 1 STG = 0.08634 ZRO (approximately $0.1675 per STG). STG holders would have the option to swap their balances for LayerZero’s native ZRO token. If the acquisition is approved and executed, Stargate would cease to operate as an independent protocol and instead function under LayerZero’s unified governance structure.
Market Response and Community Reactions
The announcement triggered a swift market reaction. STG rallied roughly 12% to $0.188, while 24-hour trading volume spiked to about $45.67 million — a jump of approximately 708.92%. Over the prior seven days, STG recorded a gain of 16.06%, though it remains down around 20.32% over the last 90 days. The proposal is currently under a 7-day review on the Stargate DAO forum. Some DAO members welcomed the chance to accelerate development and broaden Stargate’s reach, while others raised questions over the fairness of the swap ratio and implications of dissolving Stargate’s governance structure.
Impact on DeFi and Cross-Chain Operations
Stargate has been a core bridge used to move assets across multiple blockchains. LayerZero’s proposed acquisition could reshape cross-chain interoperability by consolidating a major bridging protocol under LayerZero’s umbrella, boosting ZRO’s utility and broadening its holder base. Analysts say the deal could set a precedent for further consolidation in DeFi: projects may pursue mergers or integrations to achieve faster roadmaps, stronger security postures, and unified governance that can more quickly respond to market and technical needs.
LayerZero’s proposal to acquire Stargate and the planned token swap could significantly impact the market for cross-chain operations in DeFi. Market participants are closely watching the outcome of the DAO vote and any governance updates from LayerZero, which will likely influence liquidity and strategic direction across the ecosystem.
