🚨 $110M Token Swap Shock: LayerZero (ZRO) wants Stargate Finance (STG) Back! 🚀
💼 The Big Move
■LayerZero Foundation — the creator of Stargate Finance — has proposed a $110M all-token buyout.
■Built in 2022 as a cross-chain liquidity protocol, Stargate was designed to showcase LayerZero’s interoperability tech but has since operated with separate governance.
■The deal? 1 STG → 0.08634 ZRO, permanently retiring STG if approved.
📈 Market Buzz
The proposal sparked a surge: ZRO +27% (~ $2.40) and STG +20% (~ $0.19).
Still, both remain markedly below past peaks — ZRO is 67% below its all-time high of $7.47, and STG is 95% below its ATH of $4.14.
🎯 Why It Matters?
LayerZero CEO Bryan Pellegrino says unifying under one “single stack” will accelerate development, centralize decision-making, and give STG holders more liquidity and resource support.
😬 The Backlash
Many STG holders say the offer undervalues the token, pushing for a 1:1 swap or extra incentives. Others fear losing staking rewards — a key income stream for long-term holders.
📌 What Holders Might Do?
■STG Holders: Follow the governance vote closely. Approving the swap means moving into ZRO and losing STG’s revenue-sharing model.
■ZRO Holders: Assess if acquiring Stargate boosts long-term adoption and network value.
■Both should track trading volumes and market sentiment for strategic entry/exit.
💰 Conclusion
🤝 This $110M swap proposal could fundamentally reshape both protocols—reconsolidating governance and liquidity under LayerZero.
📊For holders, the key question is whether this strategic alignment justifies short-term volatility and potential loss of STG’s incentives, in exchange for a potentially stronger unified ecosystem.
⚠️ Risks: Potential undervaluation of STG, elimination of its reward model, and uncertainty over post-merger token performance.