The LayerZero Foundation, which supports the LayerZero cross-blockchain messaging protocol, proposed to acquire the Stargate cryptocurrency protocol for $110 million, which has boosted the tokens linked to both projects.
LayerZero presented the plan in a post on the Stargate forum on Sunday, presenting the offer as "designed to accelerate both Stargate and LayerZero, giving Stargate the resources to embark on an aggressive roadmap that extends its prerogative beyond bridges".
LayerZero would exchange the platform's token, Stargate Finance, for its namesake token LayerZero at a rate of 1 STG for 0.08634 ZRO, it said.
Stargate was developed and launched by LayerZero in 2022, and the deal, if approved by the Stargate community, would bring the platform back under its umbrella.
Stargate allows users to transfer digital assets across blockchains using liquidity funds that the platform promotes as those that enable native asset transfers rather than relying on blockchain bridges, which have a history of being hacked.
Tokens linked to the platforms gained double-digit percentage points the day after LayerZero's proposal.
The LayerZero token has gained more than 23% in the last 24 hours to trade at $2.44, making it one of the biggest gainers in the cryptocurrency market over the past day.
Meanwhile, the Stargate token experienced 24-hour gains of around 16.5% to just over 19 cents, extending its rally over the past week.
Both tokens have fallen significantly from their peaks: ZRO has dropped 67% from its December high of $7.47, while STG has fallen more than 95% from its mid-2022 peak of $4.14.