LayerZero Acquires Stargate for $110 Million After Intense Bid War
LayerZero successfully acquired teh cross-chain platform Stargate for $110 million following a fierce bidding competition.
The acquisition gained a massive 95% approval from the Stargate community,showcasing significant support. More than 15,000 addresses voted, using over 7.5 million veSTG tokens, reflecting one of the highest participation rates inDAO history.
Under the new arrangement, Stargate stakers will get half of the protocol’s revenue for six months. The balance will fund LayerZero’s ZRO token buybacks, enhancing its value. STG token holders can swap their tokens for ZRO at a fixed rate starting August 25.
- Revenue split favoring stakers and ZRO buybacks
- STG tokens convertable into ZRO at fixed rate
The decision didn’t come easily. layerzero faced criticism for ending Stargate’s staking and undervaluing its revenue stream. This sparked a rare bidding war involving rivals like wormhole, Axelar, and Across Protocol. Despite wormhole’s $120 million all-cash offer, the community backed LayerZero due to strategic alignment.
Originally part of layerzero Labs in 2021, Stargate became a separate DAO in 2022. Its reacquisition solidifies LayerZero’s position in the cross-chain messaging space, addressing critical DeFi interoperability issues.
As the deal closes,attention shifts to LayerZero’s plans for integrating Stargate’s infrastructure and the potential long-term benefits for stakeholders.
