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LayerZero Foundation Proposes $110 Million Acquisition of Stargate Finance in Token Merger Deal
In a groundbreaking announcement, the LayerZero Foundation has proposed the acquisition of Stargate Finance for a staggering $110 million. This token merger deal is set to consolidate two major cross-chain protocols under one governance structure. The proposed transaction would see all STG tokens converted into ZRO at a fixed rate of 1 STG to 0.08634 ZRO, effectively valuing the entire Stargate ecosystem at $110 million based on current market prices.
Stargate Finance was originally developed by the same team behind LayerZero in 2022. Notably, both protocols share cofounders and have maintained close operational ties since Stargate’s launch. The acquisition would bring Stargate back under LayerZero’s direct control, streamlining operations and reducing redundancy between the two platforms.
Under the proposed merger terms, Stargate’s decentralized autonomous organization will hold a vote to approve or reject the deal after a seven-day comment period for community input. This move is seen as a strategic consolidation effort, providing clearer direction and additional resources for development purposes.
The LayerZero CEO emphasized the potential benefits of this move in an official statement, stating that the merger would enable the combined entity to “move faster, ship faster.” This token merger deal has sparked both excitement and concern among members of the Stargate community.
Source: coincentral.com
