Wormhole Foundation Moves to Outbid LayerZero for Stargate

TLDR:

• Wormhole Foundation is preparing a counter-offer to LayerZero’s $110M Stargate bid, requesting a five-day vote suspension.
• LayerZero’s $110M deal values Stargate assets below treasury levels, sparking Wormhole’s challenge for a fairer process.
• Stargate processed $4B in July bridge volume, showing 10x yearly growth and underscoring its rising market position.
• Stargate DAO treasury holds $92M in liquid assets, while protocol TVL stands at $345M with projected $2M yearly revenue.

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Crypto investors are watching a heated contest unfold around Stargate. The Wormhole Foundation has stepped in with plans to challenge LayerZero’s ongoing acquisition bid. It asked the community to pause an active vote for five days while it prepares a higher offer. 

The move comes as LayerZero’s proposal, valued around $110 million, faces criticism over how it prices Stargate’s assets. A more competitive process now looks likely.

Wormhole Targets Stargate With Higher Offer

Wu Blockchain reported that Wormhole announced its intent to buy Stargate, citing strong protocol growth and community value. Wormhole argued that LayerZero’s offer undervalues both Stargate’s treasury and its future revenue streams.

LayerZero’s original proposal included $110 million in ZRO tokens in exchange for assets worth about $92 million in stablecoins, Ethereum, and other holdings. The deal also included future protocol revenue, raising concerns that it priced Stargate’s ongoing business too low.

Wormhole stated that Stargate has shown rapid growth in cross-chain activity. In July alone, bridge volume hit $4 billion, a tenfold increase from the same month last year. The foundation also noted Stargate’s wide integration across more than 80 chains.

To ensure a transparent process, Wormhole asked for a five-day suspension of the current Snapshot vote. The foundation said this pause would give it enough time to finish due diligence and present a higher, formal bid.

Stargate’s Value and Wormhole’s Strategic Play

Stargate’s reported assets include $76.47 million in stablecoins, $15.9 million in Ethereum, $55 million in Stargate tokens, and $5.24 million in other holdings. Its total value locked stands at $345 million, with projected annual revenue of about $2 million.

The Wormhole Foundation explained that Stargate holders should have the chance to consider better terms. It suggested that multiple competitive offers could emerge if the process stays open and fair.

By combining resources, Wormhole sees an opportunity to create a dominant cross-chain network. Stargate brings liquidity and proven usage, while Wormhole offers broad integration and ecosystem reach.

According to the foundation, this merger would increase bridge volumes, strengthen fee generation, and create long-term value for stakeholders. Wormhole said it is confident that Stargate’s brand, assets, and community will grow under its ecosystem.

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