LayerZero Acquires Stargate for $110M, STG Swaps to ZRO
LayerZero has completed its $110 million acquisition of Stargate after 95% of STG holders approved the governance vote, outbidding Wormhole, Axelar and Across. Under the deal, all circulating STG tokens will be indefinitely swapped to LayerZero’s native ZRO at a fixed rate of 1 STG = 0.08634 ZRO. veSTG stakers who locked before August 10 will receive 50% of Stargate’s protocol revenue over the next six months, after which all revenue will support a ZRO buyback program. The combined platform preserves cross-chain transfers and liquidity pools, spanning 138 chains, supporting over 550 applications and surpassing $120 billion in transfers. Record participation from 15,000 addresses (~7.6 million STG) highlighted strong community engagement. Traders should anticipate potential ZRO liquidity shifts and short-term volatility as investors swap STG positions.
Bullish
The acquisition’s decisive community approval and fixed STG-to-ZRO swap ratio provide clear tokenomics for ZRO, while the six-month 50% revenue share and subsequent full revenue buyback program bolster demand. Integration with Stargate’s cross-chain network across 138 chains and $120 billion in transaction history enhances ZRO’s utility and liquidity. Although traders may see short-term ZRO price swings as STG holders adjust positions, the long-term effect is bullish, supported by sustained buybacks and expanded network effects.