Wormhole Counters LayerZero’s $110M Stargate Offer, Calls for Vote Delay
LayerZero’s $110 million token-swap bid to acquire Stargate now faces a rival offer from Wormhole, which has also requested a postponement of Stargate’s governance vote to allow more time for evaluation.
Wormhole is pushing for a delay in the Snapshot vote so Stargate’s community can properly consider its higher bid.
Stargate’s strong fundamentals underpin the bidding interest: the bridge processed $4 billion in transactions in July, maintains $345 million in total value locked (TVL), and holds a treasury worth $92 million in stablecoins and ether, along with $55 million in STG and other assets. Annual revenue is estimated at around $2 million.
“Our initial assessment suggests STG holders deserve a more competitive process, and we are ready to offer a significantly higher bid,” Wormhole’s proposal said.
LayerZero’s proposal involves transferring Stargate’s treasury and future income streams but has been criticized for undervaluing the protocol. Wormhole argues that “STG holders deserve better” terms.
A Wormhole-Stargate combination would form one of the largest cross-chain liquidity hubs in the crypto space, merging Stargate’s unified liquidity pools with Wormhole’s broad network integrations. The Wormhole Foundation believes this merger would increase volume and strengthen long-term ecosystem resilience.
“The Wormhole Foundation sees untapped potential in Stargate’s brand, protocol, and assets,” the proposal stated. “We believe a successful integration with Wormhole will deliver maximum value to current and future holders of STG and Wormhole tokens.”
To ensure a fair process, Wormhole has formally asked for a five-day extension on the governance vote.
