The decentralized autonomous organization (DAO) behind cross-chain bridge Stargate has approved a $110 million acquisition proposal from LayerZero, paving the way for one of the most significant mergers in the interoperability space.
As part of the deal, STG tokens will be phased out and swapped for ZRO tokens starting August 25. Holders will receive 0.08634 ZRO per STG, based on a valuation of $0.1675 per STG and $1.94 per ZRO.
DAO Approval and Competing Bids
LayerZero submitted its formal acquisition proposal on August 11. In the subsequent DAO vote, 95% of participants supported the deal, which will see Stargate’s liquidity infrastructure fully integrated into the LayerZero ecosystem.
The decision came despite a last-minute counteroffer from Wormhole, which proposed a $120 million USDC buyout, highlighting immediate liquidity and regulatory advantages. Other interoperability players, including Axelar and Across, also expressed interest.
Ultimately, Stargate’s community chose long-term alignment over short-term liquidity, citing LayerZero’s shared vision for interoperability and the fact that Stargate was originally built on LayerZero’s protocol. The DAO also rejected calls to pause or restart voting in light of Wormhole’s bid, upholding procedural integrity.
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
Cross-Chain Market Impact
The token swap portal will go live on August 25, with Stargate’s bridge interface and UI continuing to operate until Q4 2025. Full integration with LayerZero is expected by early 2026.
Industry observers believe the deal could reshape the competitive landscape in cross-chain infrastructure, strengthening LayerZero’s dominance in the sector. In particular, reliable interoperability is becoming increasingly critical for the Ethereum-based DeFi ecosystem such as DeFi Wallets.
While token-based acquisitions often invite tighter regulatory scrutiny compared to cash transactions, the overwhelming DAO support is being interpreted as a vote of confidence in LayerZero’s compliance framework.
Analysts suggest the merger could mark the beginning of broader consolidation across DeFi and crypto infrastructure, signaling a new phase for cross-chain development.
