The LayerZero Foundation wants to make a big splash. The organization, which drives one of the major cross-chain protocols in the crypto ecosystem, has just proposed to acquire the Stargate bridge for $110 million. An offer directly addressed to the Stargate DAO, with a clear condition: to obtain at least 70% of favorable votes.
End of STG, birth of a new token
If the deal goes through, it’s a major turning point for STG holders. The token would be completely removed from the market. In exchange, investors could swap their STG for ZRO, the native token of LayerZero. A swap that could reshuffle the deck in the governance and tokenomics of the protocol, while strengthening LayerZero’s influence in the world of cross-chain bridges.
A proposition that is already shaking the market
The announcement immediately triggered a surge in the two assets. STG and ZRO saw their prices rise, which, ironically, mechanically inflated the total value of the deal beyond the initial $110 million. This rapid rally shows that the market perceives this acquisition as a strong signal: LayerZero is not just looking to consolidate its position, but potentially crush the competition in the strategic segment of bridges.
Why this deal is strategic
Bridges remain one of the weak links in DeFi, often targeted by attacks. Stargate, backed by LayerZero since its inception, already benefits from a solid infrastructure and substantial adoption. By fully integrating Stargate under its control, LayerZero could reduce technical frictions, enhance security, and simplify the user experience. A key advantage as cross-chain flows explode with the rise of multi-chain solutions and L2.
A vote to closely monitor
The coming weeks will be decisive. If STG holders approve the proposal, LayerZero will end up with complete control over one of the most widely used bridges in the market, while absorbing an active community already familiar with its ecosystem. However, a rejection would mark a halt to an apparently aggressive expansion strategy.
In a market where each acquisition can redefine the balances, this operation could well be the net that propels LayerZero into a new dimension. And in DeFi, missing this kind of strategic turn could often mean being left on the sidelines.
