LayerZero's acquisition by Stargate DAO sanctioned, valuing deal at $120 million
In a groundbreaking move for the decentralized finance (DeFi) industry, the Stargate DAO has approved the acquisition by LayerZero in a deal valued at approximately $120 million. This acquisition marks a significant milestone, demonstrating the potential for large-scale DAO acquisitions and setting a new precedent for decentralized mergers and acquisitions.
The decision was made following a vote by Stargate DAO members, with a majority of 95% in favour of the revised LayerZero offer. LayerZero, co-founded by Bryan Pellegrino, expressed enthusiasm about the acquisition, with Pellegrino declaring, "The bridge is home. It's go time."
The acquisition reunites the two parties, with LayerZero being the original creators of Stargate's cross-chain protocol in 2021. The deal sees the Stargate DAO dissolved, and STG tokens swapped for ZRO tokens at a ratio of 1 STG to 0.08634 ZRO.
The acquisition is a notable development for the cross-chain protocol industry and a significant event in the history of decentralized autonomous organizations (DAOs). It is also a testament to the growing maturity and complexity of the DeFi and DAO ecosystems.
Interestingly, Wormhole, Axelar, and Across also expressed interest in the acquisition but were not chosen. LayerZero increased its bid and added incentives after rival offers were presented to the DAO. Notably, LayerZero added a revenue-sharing period for staked STG holders as part of its incentives.
This event is an excerpt from the Unchained Daily newsletter. The acquisition of Stargate DAO by LayerZero is a significant event in the DeFi space, potentially paving the way for more similar acquisitions in the future. It is a significant development in the DeFi and blockchain industries, underscoring the dynamic and evolving nature of these sectors.
In conclusion, the acquisition of Stargate DAO by LayerZero is a historic move for the DeFi industry, signifying a new era of large-scale DAO acquisitions and the continued growth and maturity of the DeFi and DAO ecosystems.
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