Last updated on December 17th, 2025 at 06:37 pm
Blockchain interoperability protocol LayerZero has finalized a $110 million acquisition of cross-chain platform Stargate, following an intense, last-minute bidding battle that drew rare multi-protocol competition in the DeFi space.
Stargate’s community voted on August 24 with a 95% majority to greenlight the LayerZero Foundation’s $110 million acquisition proposal. The proposal, one of the most heavily participated votes in Stargate Finance’s history, saw over 7.5 million veSTG tokens cast by more than 15,000 addresses. As part of the agreement, Stargate Finance DAO will be dissolved, with governance and operations shifting under the LayerZero ecosystem.
The Stargate DAO has approved our acquisition of Stargate (STG).
We’ve spent four years building the rails to reinvent how value moves. Today, we accelerate our network effects.
LayerZero is better money technology.
Stargate is the interface for value transfer. pic.twitter.com/U1QI1308dV
— LayerZero (@LayerZero_Core) August 24, 2025
Under the finalized terms, Stargate stakers will receive 50% of protocol revenue for the next six months, while the other half will fund ZRO token buybacks, aimed at reinforcing LayerZero’s native token. In addition, STG holders can swap their tokens for ZRO at a fixed rate of 1 STG = 0.08634 ZRO starting August 25.
Securing approval was not without controversy. LayerZero’s initial offer faced pushback over concerns it undervalued Stargate’s revenue stream and effectively ended the protocol’s staking program. This opened the door for competitors, triggering a rare DeFi bidding war.
Wormhole, Axelar, and Across Protocol quickly entered the fray, with Wormhole putting forward a $120 million all-cash proposal promising faster payouts for token holders. Despite the higher figure, Stargate’s community ultimately opted for strategic alignment with LayerZero over short-term financial gains.
Stargate Foundation lead Angus Lamps said in response to the bids that the vote on LayerZero’s bid couldn’t be paused, and that Stargate had “been engaging with any parties” that sign a non-disclosure agreement and want to conduct due diligence.
The acquisition also marks a return for Stargate. Originally incubated by LayerZero Labs in 2021 before being spun out as a DAO in 2022, the platform now re-enters the fold as part of LayerZero’s broader interoperability strategy.
With the deal now complete, attention turns to how LayerZero will integrate Stargate’s cross-chain liquidity infrastructure and whether the consolidation will deliver long-term value for both ZRO token holders and Stargate’s long-standing community.
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