TL;DR
- Wormhole has entered the race to acquire Stargate with a proposal higher than LayerZero’s $110 million bid, pushing for a delay in the governance vote.
- The foundation argues LayerZero’s offer undervalues Stargate and seeks time to present a superior deal.
- A potential Wormhole–Stargate merger could create one of the most powerful cross-chain ecosystems, combining unified liquidity pools with extensive network integrations.
Stargate, launched in 2022 by LayerZero, has rapidly grown into one of the most significant bridging protocols in decentralized finance. In July alone, the platform processed over $4 billion in transactions, while its total value locked remains above $345 million.
With a treasury containing over $90 million in stablecoins and ether, plus additional token reserves, Stargate has become a target for top players aiming to secure strategic dominance in cross-chain infrastructure. The protocol’s consistent growth highlights strong market demand for seamless interoperability and positions it as a vital piece in DeFi’s future architecture.
Wormhole Challenges LayerZero’s Valuation
Wormhole submitted its proposal this week, claiming Stargate deserves a more competitive acquisition process. The foundation highlighted that LayerZero’s ($110 million) terms undervalue both the protocol’s treasury and its long-term revenue streams. According to Wormhole, the offer fails to adequately reward STG tokenholders, who play a pivotal role in the network’s governance and liquidity growth.
In its forum post, Wormhole stressed that it sees “unrealized value” in Stargate’s brand and infrastructure. By integrating Stargate’s liquidity pools with Wormhole’s established cross-chain connections across dozens of networks, the merger could establish a new standard for interoperability. Analysts note that this move would not only consolidate market share but also improve transaction efficiency and resilience in multichain operations.
A Potential Cross-Chain Powerhouse
Wormhole requested a five-day delay in the Snapshot governance vote, arguing that more time is needed to conduct due diligence and prepare a refined bid. Supporters believe this could set the stage for a fairer process, especially as Stargate’s community expressed mixed views on LayerZero’s initial proposal.
Meanwhile, LayerZero’s updated bid introduced revenue-sharing incentives to gain community backing, with nearly 89% of current votes favoring the revised plan. Yet Wormhole’s entry injects new momentum into the process, raising expectations of a potential bidding war.
Market reaction has been swift, with Wormhole’s token gaining over 6% in 24 hours, while Stargate’s STG token also spiked before cooling slightly. Whether Wormhole can secure enough support remains to be seen, but its higher bid underscores a clear trend: cross-chain platforms are becoming central battlegrounds for crypto’s next phase of expansion and innovation worldwide.
