LayerZero Foundation has shaken the DeFi market with a proposal of 110 million dollars, aimed at acquiring Stargate, one of the most used cross-chain bridging protocols in the world. The announcement has already led to increased volatility in the tokens involved and could significantly alter the balance of the entire sector.
According to the data collected by industry experts, this offer represents one of the largest investments in the cross-chain landscape in recent years, signaling the strategic importance of the DeFi market.
Inside the LayerZero proposal for Stargate: record figure and revolution of governance
The offer amounts to 110 million dollars, with no official news of recent increases. The goal is quite clear: completely absorb Stargate into the LayerZero ecosystem, with the consequent dissolution of its DAO, to gain in efficiency, operational speed, and undertake a more ambitious technological roadmap on the cross-chain front.
The core of the proposal lies in the direct exchange of tokens: each 1 STG will be converted into 0.08634 ZRO, aligning the value with the latest market prices (approximately STG $0.17, ZRO $1.97. An interesting aspect is that this transparent ratio seems designed to fully involve the Stargate community in the transition to LayerZero.
Markets in turmoil: the numbers of the proposal and the immediate effect on prices
In detail:
1 STG convertible into 0.08634 ZRO
Current total offer: 110 million dollars
Immediate impact: STG +10-12%, ZRO +14-15% after the announcement
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The value of the offer was strengthened by the prompt response of the markets, with marked increases on both tokens immediately after the publication of LayerZero’s proposal. Industry analysts note that STG has already shown price peaks above $4 in 2021 and 2022, making this dynamic even more significant.
“`html STGUSDT quotes by TradingView { “lineWidth”: 2, “lineType”: 0, “chartType”: “candlesticks”, “fontColor”: “rgb(106, 109, 120)”, “gridLineColor”: “rgba(242, 242, 242, 0.06)”, “volumeUpColor”: “rgba(34, 171, 148, 0.5)”, “volumeDownColor”: “rgba(247, 82, 95, 0.5)”, “backgroundColor”: “#0F0F0F”, “widgetFontColor”: “#DBDBDB”, “upColor”: “#22ab94”, “downColor”: “#f7525f”, “borderUpColor”: “#22ab94”, “borderDownColor”: “#f7525f”, “wickUpColor”: “#22ab94”, “wickDownColor”: “#f7525f”, “colorTheme”: “dark”, “isTransparent”: false, “locale”: “en”, “chartOnly”: false, “scalePosition”: “right”, “scaleMode”: “Normal”, “fontFamily”: “-apple-system, BlinkMacSystemFont, Trebuchet MS, Roboto, Ubuntu, sans-serif”, “valuesTracking”: “1”, “changeMode”: “price-and-percent”, “symbols”: [ [ “BINANCE:STGUSDT|1D” ] ], “dateRanges”: [ “1d|1”, “1m|30”, “3m|60”, “12m|1D”, “60m|1W”, “all|1M” ], “fontSize”: “10”, “headerFontSize”: “medium”, “autosize”: false, “width”: 800, “height”: 500, “noTimeScale”: false, “hideDateRanges”: false, “hideMarketStatus”: false, “hideSymbolLogo”: false } “` Why is the dissolution of Stargate’s DAO causing discussion within the community?
The most debated point concerns the dissolution of the Stargate DAO to unify governance under the LayerZero Foundation. In a context that has always emphasized decentralization as a founding value, the choice to concentrate control in a single entity has sparked strong controversies and heated debates among STG holders and market operators.
Bryan Pellegrino, co-founder of LayerZero Labs, firmly defended this decision on X:
“Only a radical and centralized integration will allow us to accelerate the Stargate roadmap and ensure truly scalable and secure cross-chain solutions”.
Porta il Bridge a casa.
Ogni giorno vengono prese decisioni internamente a @LayerZero_Core sui prodotti da costruire, partnership fatte, integrazioni
Ogni giorno piccole micro decisioni di farlo noi stessi, inviarle a Stargate, chi scrive il codice.
Tutto questo è overhead
Tutto questo… https://t.co/KUr9AHEasr
— Bryan Pellegrino (臭企鹅) (@PrimordialAA) 10 agosto 2025
Nonetheless, many members of the community have complained about an offer valuation considered insufficient when compared to Stargate’s real potential, noting that the bridge has so far generated over 70 billion dollars in cumulative volume and has enjoyed sustained growth during the most active market periods. An aspect not to be underestimated is the emotion tied to the loss of autonomy by the community.
LayerZero and cross-chain interoperability: why is Stargate a strategic asset?
LayerZero is at the forefront in the development of cross-chain technologies, designed to enable secure and frictionless communication between different blockchains.
Stargate is considered one of the main public cross-chain bridges for managed volumes, a position that explains the strategic interest of the Foundation. With the integration, LayerZero aims to consolidate its leadership in DeFi and optimize the management of assets migrated between the various chains, reducing inefficiencies and risks associated.
Among the advantages expected from the marriage stand out:
Increase in manageable volumes
Faster services for new projects that will choose LayerZero
Better security and scalability for end users
What changes for users: the future of STG tokens after the acquisition
In the case of approval, STG holders will be able to convert their tokens into ZRO according to the ratio defined in the offer. This step will allow former Stargate users to access LayerZero services and use the ZRO token for all operations within the ecosystem.
To this is added the promise of new tools and features coming soon for those who decide to join the initiative, including access to exclusive partners and collaboration opportunities with teams from leading projects in the cross-chain sector.
Stargate Roadmap after the merger: aggressive expansion or risk of centralization?
According to the LayerZero Foundation, the resources resulting from the acquisition will be used to expand innovative cross-chain services, going beyond the mere function of bridging:
Enhancement of cross-chain capabilities
Rapid integration with new partners in the LayerZero ecosystem
Greater security and scalability for users
In the meantime, industry observers remain divided: on one hand, an increase in efficiency and significant new features is anticipated, while on the other hand, it is noted that the concentration of governance may raise doubts about the real openness and inclusivity towards the community.
An important external point of view is offered by The Block, which in an analysis highlights how the success of this operation could trigger “a new wave of consolidation among the main bridge protocols”, paving the way for increasingly broad alliances in the DeFi world.
Future scenario: LayerZero-Stargate, new hub of DeFi?
Will centralization be the winning card to ensure scalability and security, as LayerZero claims, or will giving up DAO autonomy represent a brake on the growth of the community?
The sector is watching the coming weeks closely: the public debate is open and much will depend on the reaction of the stakeholders involved. What is evident is that this offer could mark a crucial moment in DeFi, positioning LayerZero as a new hub of global cross-chain finance.
According to official reports and market analyses updated to mid-2025, this operation is among the most significant in the realm of cross-chain protocols, confirming the growing importance of DeFi in global digital finance.
