LayerZero Stargate Acquisition Wins $110M Deal Backed by DAO

The world of decentralized finance just witnessed a turning point. LayerZero has secured Stargate in a $110 million deal after a tense bidding war that gripped the DeFi community. What makes this deal remarkable is the overwhelming backing from Stargate’s DAO. An incredible 95% of voters supported the acquisition. Starting August 25, STG token holders will swap their tokens for ZRO, bringing a major shift for both projects.

A Clear Win Through Community Support

Stargate’s community didn’t hold back. When the proposal went live in mid-August, more than 15,000 addresses took part. Together, they cast over 7.5 million veSTG tokens. The result was clear—95% voted yes. This wasn’t just approval; it was a strong show of confidence in LayerZero’s vision. The vote also highlighted how much power DeFi communities hold when deciding the future of major projects.

Fierce Competition From Rival Bidders

The decision came after a tough fight. Wormhole, Axelar, and Across each tried to win over Stargate with their own offers. Wormhole even offered $120 million in cash, which looked appealing at first glance. However, the community wasn’t swayed by quick payouts. Instead, they chose LayerZero because its long-term goals aligned with Stargate’s own mission. By doing so, they signaled that vision and trust matter more than fast money.

What Stargate Holders Can Expect

For Stargate holders, the deal brings direct benefits. Each STG token will swap for 0.08634 ZRO starting August 25. On top of that, stakers will receive half of Stargate’s protocol revenue for six months. The other half will go toward buying back ZRO tokens, which should add support for the new asset’s value. This structure doesn’t just reward existing holders—it also creates confidence in the strength of the future ecosystem.

Stargate’s Return to Its Roots

The deal also feels like a reunion. LayerZero originally created Stargate in 2021 before spinning it out as a separate DAO in 2022. Now the project is coming back under the same roof. By bringing governance and development together again, LayerZero aims to make growth faster and coordination smoother. This return to origins could mark a new phase of stability for both teams.

What This Means for DeFi

This deal isn’t just about Stargate and LayerZero—it points to a bigger shift in DeFi. Instead of staying separate, more projects are now choosing to team up or merge. The need for safe and simple cross-chain transfers keeps growing, and working together often feels more reliable than going it alone. Even so, some in the community believe Stargate could be worth more than the $110 million price, especially when you look at its large treasury, strong transfer activity, and the big amount of value locked in the platform.

Looking Ahead

The transition begins August 25 with the token swap. The integration will take place gradually, finishing by early 2026. For everyday users, this could bring quicker transfers, easier cross-chain use, and better rewards. For investors, the deal is basically a bet that the future of DeFi will be built on projects joining forces rather than staying separate. The coming months will show whether LayerZero can turn this bold move into lasting value.