LayerZero Labs, a leading cross-chain messaging protocol, has officially acquired Stargate Finance for $110 million following a weekend-long governance vote. The acquisition — which received 94.76% approval from the Stargate community — brings Stargate back under the wing of its original creator and marks a significant consolidation in the blockchain interoperability space.
Stargate Finance is a decentralized bridging protocol that enables seamless token transfers across more than 80 blockchains using pooled liquidity. Its architecture is widely regarded as one of the most secure and scalable in the sector. The acquisition combines LayerZero’s powerful cross-chain messaging infrastructure with Stargate’s battle-tested bridging technology, potentially creating one of the most vertically integrated and secure interoperability stacks in the cryptocurrency industry today.
Historic Turnout Seals the Deal
The governance vote saw over 15,000 unique wallet addresses participate — the highest turnout in Stargate’s history. A total of 7.2 million Stargate Tokens (STG), representing 94.76% of the vote, supported the acquisition, while just under 400,000 tokens opposed it.
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LayerZero co-founder Bryan Pellegrino celebrated the outcome on X, highlighting strong support both in stake weight and voter turnout.
However, the path to acquisition was far from smooth. Wormhole, another major cross-chain protocol, submitted a rival $120 million all-cash offer, arguing that Stargate was undervalued. Wormhole’s proposal included an aggressive incentive: triple projected staking rewards paid upfront for six months.
Other protocols, including Axelar Network and Across Protocol, also showed interest in acquiring Stargate, but requested additional time to submit formal bids. Their request was denied by Angus Lamps, head of the Stargate Foundation, who opted not to delay the vote.
LayerZero’s Last-Minute Proposal Overhaul
LayerZero’s initial offer drew sharp criticism from STG holders, primarily because it allocated most of Stargate’s revenue toward LayerZero Token (ZRO) buybacks, offering minimal direct value to the Stargate community.
In response, LayerZero revised its proposal just hours before the vote concluded. The final version splits revenue distribution over the next six months: 50% will go to STG stakers, and the remaining 50% will be used for ZRO buybacks.
Additionally, the deal includes a token conversion: all STG tokens will be exchanged for ZRO at a fixed rate of 1 STG = 0.08634 ZRO. This swap is designed to align the two ecosystems under one governance and economic model, effectively reuniting Stargate with LayerZero — the protocol that originally launched it in 2022 before spinning it out as an independent project.
Market Reaction & Strategic Implications
The acquisition sparked movement across token markets. STG rose by 6% during the voting period, while ZRO gained 3.6%, trading around $2. Even Wormhole’s W token jumped 6.3% on news of its competing offer.
From a strategic standpoint, the deal is seen as a major consolidation move in the fragmented cross-chain space. Stargate alone processed $4 billion in cross-chain transfers in July 2025, connecting over 80 blockchains and supporting assets such as USDC, USDT, ETH, and BTC through pooled liquidity—a model that reduces common vulnerabilities seen in traditional bridges.
By integrating LayerZero’s messaging layer with Stargate’s liquidity infrastructure, this acquisition could set a new standard for secure, scalable blockchain interoperability.
