{"id":494784,"date":"2025-08-21T00:30:44","date_gmt":"2025-08-20T23:30:44","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=494784"},"modified":"2025-08-24T14:02:25","modified_gmt":"2025-08-24T13:02:25","slug":"wormhole-foundation-challenges-layerzeros-110m-stargate-acquisition-proposal","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/wormhole-foundation-challenges-layerzeros-110m-stargate-acquisition-proposal\/","title":{"rendered":"Wormhole Foundation challenges LayerZero&#8217;s $110M Stargate acquisition proposal"},"content":{"rendered":"<p><span style=\"font-weight: 400;\"><a href=\"https:\/\/cryptoslate.com\/products\/wormhole-bridge\/\">Wormhole<\/a> Foundation (WF) entered the bidding competition for Stargate Finance, challenging LayerZero's proposed $110 million acquisition.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In an<\/span> <strong><a href=\"https:\/\/x.com\/WormholeFdn\/status\/1958198119356887291\">Aug. 20 statement<\/a><\/strong><span style=\"font-weight: 400;\"> via <a href=\"https:\/\/cryptoslate.com\/companies\/x\/\">X<\/a>, WF argued that LayerZero's offer significantly undervalues the cross-chain bridge protocol.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">LayerZero Foundation announced its<\/span> <strong><a href=\"https:\/\/stargate.discourse.group\/t\/layerzero-foundation-acquisition-of-stargate-stg\/682\/2\">acquisition proposal on Aug. 10<\/a><\/strong><span style=\"font-weight: 400;\">, offering to purchase all circulating STG tokens at $0.1675 per token through a swap for ZRO tokens.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The proposal requires approval from STG holders through Stargate's governance process, with a 70% approval threshold needed for passage.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Wormhole Foundation contended that LayerZero's bid fails to reflect Stargate's true value, citing the protocol's treasury holdings and recent performance metrics.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Further, Wormhole shared that Stargate maintains over $92 million in treasury assets, including $76 million in stablecoins and $16 million in <a href=\"https:\/\/cryptoslate.com\/coins\/ethereum\/\">Ethereum<\/a>, while demonstrating substantial growth momentum.<\/span><\/p>\n<h2><strong>Performance drives valuation dispute<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\"><span style=\"color: #333333;\">On-chain data shows that Stargate processed $4 billion in bridge volume during July 2025, representing a 10x year-over-year increase. As<\/span>\u00a0of Aug<span style=\"color: #333333;\">. 20, it had $348 million in total value locked (TVL) across more than 80 chains<\/span>.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to the Wormhole Foundation:<\/span><\/p>\n<blockquote><p><strong>&#8220;STG holders deserve better. The current bid undervalues the protocol's assets, brand, codebase, and team.&#8221;\u00a0<\/strong><\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">The WF added that these fundamentals justify a &#8220;meaningfully higher offer&#8221; than LayerZero's proposed valuation.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">LayerZero Foundation defends its pricing, noting Stargate's backing of $0.14444 per circulating token compared to its trading price of $0.1637 per token at proposal time. It added that based on its calculations, the offer represents a premium on both metrics.<\/span><\/p>\n<h2><strong>Differences beyond offers<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">LayerZero positions the acquisition as <a href=\"https:\/\/cryptoslate.com\/tether-partners-with-layerzero-to-launch-cross-chain-stablecoin-usdt0\/\">ecosystem consolidation<\/a>, noting Stargate's established infrastructure and user base. The foundation plans to direct all future Stargate excess revenue toward <a href=\"https:\/\/cryptoslate.com\/coins\/layerzero\/\">ZRO<\/a> token buybacks while expanding the protocol's mandate beyond traditional bridging services.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In addition, LayerZero argued that unified governance would eliminate resource conflicts between potentially competitive protocols.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">At the same time, Wormhole Foundation proposed an alternative vision combining &#8220;Stargate's unified liquidity pools with our broad ecosystem of integrations.&#8221;\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The foundation said this approach would generate &#8220;higher volumes, higher revenues, and greater stickiness,&#8221; benefiting both <a href=\"https:\/\/cryptoslate.com\/coins\/stargate-finance\/\">STG<\/a> and <a href=\"https:\/\/cryptoslate.com\/coins\/wormhole\/\">W<\/a> token holders. It also requested a five-business-day suspension of the ongoing on LayerZero's proposal vote to allow time for due diligence and bid preparation.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The governance vote requires a 1.2 million veSTG token quorum with 70% approval for LayerZero's proposal to pass. The proposal was amended to provide additional compensation for veSTG stakers through six months of revenue distribution.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The amendment happened following criticism about the equal treatment of locked versus unlocked tokens.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Wormhole Foundation (WF) entered the bidding competition for Stargate Finance, challenging LayerZero&#8217;s proposed $110 million acquisition. In an Aug. 20 statement via X, WF argued that LayerZero&#8217;s offer significantly undervalues the cross-chain bridge protocol. LayerZero Foundation announced its acquisition proposal on Aug. 10, offering to purchase all circulating STG tokens at $0.1675 per token through [&hellip;]<\/p>\n","protected":false},"author":1511,"featured_media":409707,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,77928,46940,77968],"tags":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Wormhole Foundation challenges LayerZero&#039;s $110M Stargate acquisition proposal<\/title>\n<meta name=\"description\" content=\"Wormhole Foundation contended that LayerZero&#039;s bid fails to reflect Stargate&#039;s true value.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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