TLDR:
- Wormhole offered $120M USDC to acquire Stargate, exceeding LayerZero’s $110M proposal currently up for DAO vote.
- LayerZero’s deal dissolves Stargate DAO and swaps $STG for $ZRO at a fixed 1:0.08634 conversion ratio.
- Wormhole pledged to honor Stargate’s commitments for 12 months, pushing for a competitive process for $STG holders.
- Stargate DAO’s vote on the LayerZero acquisition runs until August 24, requiring 70% approval with 1.2M quorum.
A takeover battle is heating up in DeFi. Stargate Finance, one of crypto’s largest cross-chain liquidity projects, is now caught between two buyers.
LayerZero has already tabled a $110 million acquisition that dissolves Stargate’s DAO. Wormhole responded with a higher $120 million all-cash proposal, calling for more time before the vote ends.
The race leaves Stargate’s community at the center of a fast-moving tug-of-war.
LayerZero’s $110M Stargate Proposal
On August 17, Stargate Ecosystem shared details of a buyout plan from LayerZero. The terms place all circulating $STG, including staked tokens, into a fixed swap for LayerZero’s $ZRO at 1 STG to 0.08634 ZRO.
Locked and staked tokens would be released, giving holders immediate liquidity through the swap.
The plan also introduces a revenue split. veSTG holders captured in the snapshot receive half of Stargate’s revenue for six months. The remaining revenue supports ZRO buybacks, with full buybacks starting after the six-month window.
Governance is also part of the deal. Stargate DAO would be dissolved, with its operations moving under the LayerZero Foundation. Voting for the proposal began on August 17 and is scheduled to close on August 24.
For approval, the Snapshot requires 1.2 million veSTG votes and at least 70 percent support. Stargate’s future hinges on whether holders agree to shift fully into LayerZero’s ecosystem.
Wormhole Counters With $120M Cash Offer
Just days later, the Wormhole Foundation went public with a competing proposal.
In a post on August 22, the group announced a $120 million all-cash offer, topping LayerZero’s initial $110 million valuation. The team emphasized the bid removes conversion risks and gives holders immediate USDC liquidity.
Wormhole stated it would honor Stargate’s existing agreements for 12 months, covering counterparties, integrators, and contributors. The group stressed that Stargate deserves a competitive process instead of a quick sale at what it views as a lower valuation.
The foundation also said Stargate would remain a key part of Wormhole’s broader product line. With resources behind it, contributors see room to expand usage and integrate with other Wormhole initiatives under development.
The move places pressure on Stargate’s DAO voters. With Wormhole urging a pause in the voting process, Stargate holders must now weigh immediate ZRO integration against a higher cash payout.
The post Wormhole Pushes $120M Cash Bid to Rival LayerZero’s Stargate Deal appeared first on Blockonomi.
Source: https://blockonomi.com/wormhole-pushes-120m-cash-bid-to-rival-layerzeros-stargate-deal/
