LayerZero Foundation has completed its $110 million acquisition of Stargate following a 95% vote approval from Stargate DAO members. STG tokens will be swapped for ZRO tokens.
Acquisition of Stargate and DAO Support
LayerZero Foundation successfully acquired Stargate after a decisive 95% support from Stargate DAO members. This follows a competitive environment in the DeFi sector, where the Wormhole Foundation proposed a rival $120 million cash bid, which did not succeed.
Market Reactions to the Deal
Some believe that the merger strengthens LayerZero's position in cross-chain integration, while the Wormhole Foundation argues that the acquisition undervalues Stargate. Social media reactions show divided opinions on the future implications of this agreement.
Shifts in DeFi Strategies
LayerZero's acquisition signifies a notable shift in DeFi markets, emphasizing integration over immediate cash offerings, which relates to historical instances of valued mergers and collaborations.
The LayerZero-Stargate deal redefines merger approaches in DeFi, focusing on long-term integration and may influence future regulatory discussions regarding cross-chain assets.