Wormhole Challenges LayerZero with Higher Bid for Stargate

TLDR

• Wormhole challenges LayerZero’s $110M Stargate bid with stronger terms.

• Stargate deal heats up as Wormhole enters with a competitive counteroffer.

• Wormhole seeks to outbid LayerZero, citing Stargate’s true market value.

• Stargate may delay vote as Wormhole eyes acquisition with better returns.

• Cross-chain rivals clash as Wormhole contests LayerZero’s Stargate takeover.

The Wormhole Foundation has stepped forward with a competitive bid to acquire Stargate, directly challenging LayerZero’s ongoing acquisition proposal. Citing Stargate’s strong treasury, expanding protocol volume, and growing ecosystem, Wormhole claims LayerZero’s offer does not reflect Stargate’s true market value. The foundation has requested a brief delay in Stargate’s current Snapshot vote to present its improved proposal.

LayerZero’s Offer Faces New Competition

LayerZero previously launched a proposal to acquire Stargate by offering $110 million in ZRO tokens to STG holders. This deal includes absorbing all Stargate protocol revenue and assets while dissolving the Stargate DAO upon approval. Community voting on this proposal began earlier in the week and is scheduled to close on August 24, 2025.

Under this proposal, LayerZero would receive Stargate’s $92 million treasury and future revenue in exchange for token-based consideration. The offer requires a 70% voter threshold and has triggered mixed reactions from STG holders and third parties. The Wormhole Foundation believes Stargate holders deserve better economic terms given the protocol’s performance.

The foundation argues the current offer underestimates Stargate’s ongoing revenue, treasury reserves, and market integration. It highlights the projected $2 million annual revenue and $345 million TVL as key strengths. Moreover, Stargate processed $4 billion in bridge volume in July alone, showing 10x growth from the previous year.

Wormhole Proposes a Stronger Strategic Fit

Wormhole’s response calls for a transparent and competitive process to ensure Stargate’s full valuation. The foundation asserts that combining Stargate’s deep liquidity with its cross-chain infrastructure will create a dominant position in the space. It emphasizes potential benefits such as higher volumes, better fee generation, and stronger ecosystem retention.

 The foundation also views Stargate’s user demand, development team, and codebase as strategic advantages. It believes its offer can deliver immediate and long-term value for STG and Wormhole stakeholders.

Wormhole is requesting a five-day delay in the Snapshot vote to finalize and present its enhanced proposal. It is also seeking detailed disclosures from Stargate to complete its due diligence. These include updated financials, asset listings, team structure, liabilities, and legal information, which may be reviewed under NDA.

Stargate at the Center of Bidding Interest

Due to its position in the cross-chain market, Stargate has drawn serious acquisition interest. The protocol holds $76.47 million in stablecoins, $15.9 million in ETH, $5.24 million in other assets, and $55 million in STG tokens. Combined with its operational strength, these assets have positioned Stargate as a top target.

Its protocol infrastructure is fully deployed and widely adopted, making it an attractive addition for larger networks. As the Snapshot vote nears conclusion, the community faces a critical decision on whether to accept LayerZero’s terms or await better offers. Wormhole’s move may attract more bidders, increasing the competitive pressure.

Wormhole’s intention to outbid LayerZero introduces complexity into the Stargate sale process. The final outcome will likely depend on how the Stargate Foundation and community respond to this emerging interest. A decision in favor of a higher bid could set a precedent for future protocol acquisitions.

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