Wormhole Challenges LayerZero’s $110M Stargate Buyout with Higher Bid and Vote Delay Request

LayerZero’s $110 million token-swap offer to acquire bridging service Stargate is now facing competition as Wormhole enters the fray with a higher bid and calls to postpone Stargate’s governance vote.

Wormhole has proposed delaying the Snapshot vote to give the community more time to evaluate its superior offer.

The interest in Stargate is well-founded. The bridge processed $4 billion in transaction volume during July, holds $345 million in total value locked (TVL), and controls a treasury worth $92 million in stablecoins and ether, alongside $55 million in STG tokens and other assets. The project generates roughly $2 million in annual revenue.

“Based on our preliminary analysis, we believe STG holders deserve a more competitive sale process, and we are ready to present a significantly higher bid,” Wormhole’s proposal stated.

LayerZero’s offer includes transferring Stargate’s treasury and future income streams, which some critics argue undervalues the asset. Wormhole contends that these terms shortchange token holders and insists “STG holders deserve better.”

A Wormhole–Stargate merger would create one of the largest cross-chain liquidity hubs in crypto, combining Stargate’s unified liquidity pools with Wormhole’s extensive integrations across numerous blockchains. The Wormhole Foundation argues this synergy would drive higher volume and enhance long-term ecosystem resilience.

“We see untapped potential in the Stargate brand, protocol, and assets,” the proposal reads. “A successful integration of Stargate into the Wormhole ecosystem will deliver both immediate and sustained value for current and future STG and Wormhole token holders.”

To ensure a thorough review and a fair decision-making process, Wormhole has formally requested a five-day delay to Stargate’s governance vote.