LayerZero Secures Stargate in $110M Blockbuster Deal After Fierce Bidding War

Cross-chain interoperability giant LayerZero just dropped $110 million to acquire bridge protocol Stargate—ending one of crypto's most intense corporate showdowns.

The bidding war saw multiple suitors battling for Stargate's liquidity infrastructure. LayerZero ultimately prevailed, locking down the bridge protocol that moves millions daily across chains.

This isn't just another acquisition—it's a strategic power play. LayerZero absorbs Stargate's user base and tech stack, tightening its grip on the cross-chain narrative.

Market watchers are calling it a defensive move against rising competitors. Because nothing says 'innovation' like buying your way to dominance—classic finance playbook, just with more blockchain buzzwords.

Stargate to shift to LayerZero control

Under the final agreement, Stargate stakers will receive 50% of protocol revenue for the next six months. The remaining 50% will be allocated toward LayerZero’s ZRO token buybacks, which will strengthen token value. Additionally, holders of STG tokens will be able to convert them into ZRO at a fixed exchange rate of 1 STG = 0.08634 ZRO, starting Monday, Aug. 25.

This is a structural change that aligns Stargate’s cross-chain liquidity infrastructure with LayerZero’s wider interoperability strategy as governance and operations MOVE under the LayerZero umbrella.

Rival bids fail to sway Stargate vote

Gaining approval wasn’t an easy process. Because it terminated Stargate’s staking program and allegedly undervalued its strong revenue generation, LayerZero’s original proposal drew criticism from the community. Rivals were able to take advantage of this discontent, which led to a rare multi-protocol bidding war in decentralized finance.

Wormhole (W), Axelar (AXL), and Across Protocol joined the battle immediately, with Wormhole even offering an all-cash bid of $120 million with accelerated payouts for holders of Stargate tokens. Despite the higher offer, Stargate’s community ultimately stuck with LayerZero, emphasizing strategic alignment over short-term gains.

Before being spun out as a DAO in 2022, LayerZero Labs initially incubated Stargate in 2021. LayerZero’s reacquisition of Stargate solidifies its ecosystem and improves its standing in the cross-chain messaging and liquidity space in a time when interoperability is still a major DeFi bottleneck,

Now that the acquisition is complete, focus is on how LayerZero will incorporate Stargate’s infrastructure and whether the move will provide long-term benefits to both ZRO holders and Stargate’s loyal supporters.