LayerZero Proposes to Acquire Stargate With STG-to-ZRO Conversion

Trading volumes for LayerZero (ZRO) and Stargate (STG) tokens spiked following the announcement of LayerZero Foundation’s plans to acquire Stargate. According to CoinMarketCap, ZRO rose 28% to $2.48, while STG gained 20% to $0.1987 amid strong buying activity.

Deal Details

LayerZero Foundation announced its intention to purchase the entire circulating supply of Stargate tokens at $0.1675 per STG. At the time of the proposal, this was above the market price of $0.1637 and higher than the token’s calculated backing value of $0.14444.

The deal involves exchanging all STG tokens, including staked and voting-eligible ones, for ZRO at a ratio of 1 STG to 0.08634 ZRO. The calculation uses a price of $1.94 per ZRO.

Integration Into the LayerZero Ecosystem

Once the deal is completed, Stargate will become part of the LayerZero ecosystem and will focus on developing user-facing services that expand its scope beyond its core bridge function. It was also announced that governance via the Stargate DAO will end, and all future surplus revenue will be directed toward a ZRO buyback program to reduce the token’s circulating supply.

Approval Process

Under Stargate Finance DAO rules, the process will have several stages:

• A seven-day community discussion, where STG holders can ask questions.
• A three-day vote on the Snapshot platform. The proposal requires a quorum of 1.2 million veSTG and approval by at least 70% of votes.
• If approved, the exchange of STG for ZRO at the fixed rate of 0.08634 ZRO per STG will begin. The swap contract will remain open indefinitely, although it may be closed with prior notice if necessary.

Stargate’s Financial Performance

Over its three years of operation, Stargate has become the largest bridge in the industry, facilitating more than $70 billion in total transaction volume. The platform supports every major OFT and enables liquidity launches on new networks using its Hydra technology.

Executive Commentary

LayerZero CEO Bryan Pellegrino said that integrating Stargate into LayerZero will accelerate product development, streamline internal processes, and create a unified technology base for partners and integrators. According to him, the deal is just “the tip of the iceberg,” with more initiatives to follow.

This post is for informational purposes only and is not an ad or investment advice. Please do your own research making any decisions.