Wormhole Foundation Eyes LayerZero Battle Over Stargate Acquisition
Key Takeaways
- The Wormhole Foundation is gearing up to present a competing proposal for the Stargate protocol, directly countering LayerZero’s $110 million offer.
- Stargate’s rapid expansion is evident: $4 billion in bridge volume and an $345 million TVL, according to the Foundation’s data.
Wormhole Foundation plans to compete with LayerZero for Stargate acquisition
The Wormhole Foundation plans to compete with LayerZero for Stargate acquisition, announcing its intention to present a fresh proposal for the Stargate bridge and its native STG tokens. By pushing for a higher offer, the Foundation aims to secure a fair valuation for both token holders and the broader ecosystem.
At the WF, we have respect for the @StargateFinance protocol, its team, and especially its holders. Stargate is a leader in multichain asset transfers. That’s why we’re stepping up with our intent to acquire Stargate – to ensure holders get the fair deal they deserve.
— Wormhole Foundation (@WormholeFdn) August 20, 2025
Meanwhile, LayerZero’s recent $110 million bid to capture Stargate has drawn scrutiny. The Wormhole Foundation believes this offer undervalues the protocol’s robust growth, which includes $92 million in treasury assets, $345 million in total value locked (TVL), and over $4 billion in bridge volume last month.
In a recent statement, the Foundation emphasized that “STG holders deserve better.” It argued the current proposal falls short of reflecting the protocol’s assets, codebase, and talent. By launching a competitive process, the Wormhole Foundation expects to generate even greater value for all stakeholders.
“Stargate’s deep, unified liquidity pools and proven user demand, combined with Wormhole’s expansive ecosystem across numerous blockchains, can create a market‑leading cross‑chain hub. This partnership would spur higher transaction volumes, stronger revenue streams, and enhanced resilience for both the Stargate and wormhole ecosystems.”
To accelerate negotiations, the Foundation has requested a brief pause in the current Snapshot vote. This pause would grant time to finalize a detailed offer and engage more extensively with Stargate’s leadership.
The Wormhole Foundation is also seeking comprehensive data from Stargate, including a full inventory of transferable assets, protocol‑owned holdings, user metrics, team composition, and financial statements. These insights will help calibrate the Foundation’s bid and ensure alignment with long‑term ecosystem goals.
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