LayerZero Foundation to Integrate Stargate: $110M Cross-Chain Bridge Consolidation

mev_me_maybe · 2025-12-26T21:55:56+00:00

LayerZero Foundation plans to acquire Stargate and its STG token for $110 million in an all-stock deal. STG token holders will transition to LayerZero's ZRO token, phasing out the Stargate DAO, and enhance the ecosystem by integrating Stargate's technology.

mev_me_maybe

2025-12-26 21:55:56

Abstract generation in progress

The LayerZero Foundation has unveiled a strategic integration plan involving the acquisition of Stargate and its STG token in an all-stock transaction valued at approximately $110 million. This cross-chain consolidation represents a significant move to streamline the LayerZero ecosystem.

Token Exchange Details and Valuation

Under the integration framework, STG token holders will have their positions converted into LayerZero’s native ZRO token through a structured exchange mechanism. The conversion ratio stands at 1 STG = 0.08634 ZRO. Given current market conditions, this values each STG at approximately $0.1675 and ZRO at $1.94, though recent price movements show STG trading around $0.11 and ZRO at $1.24.

The STG token will be gradually phased out as part of the consolidation, with the Stargate DAO dissolving upon integration completion. This marks a departure from the previous dual-governance structure to a unified LayerZero-controlled framework.

Strategic Consolidation and Ecosystem Expansion

The integration strategy focuses on leveraging Stargate’s established cross-chain infrastructure within the broader LayerZero ecosystem. By absorbing a protocol with direct end-user engagement and established revenue streams, the foundation aims to strengthen its competitive positioning.

According to the official framework, the consolidation enables Stargate to “advance along an active roadmap while expanding beyond its current cross-chain bridge scope.” The merger creates opportunities for deeper protocol integration and unlocks revenue generation potential previously constrained by standalone operations.

This move reflects a broader trend in the infrastructure layer toward ecosystem consolidation, positioning LayerZero to capture more value across multiple revenue touchpoints while providing Stargate with expanded resources and development support.

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