The Wormhole Foundation has stepped into the spotlight with a challenge to LayerZero’s $110 million bid to acquire Stargate Finance. Rather than sitting on the sidelines, Wormhole is questioning whether the current deal truly reflects Stargate’s value and potential.
LayerZero’s Offer Sparks Controversy
LayerZero proposed a full buyout of circulating Stargate tokens using its own ZRO token, valuing each STG at roughly 17 cents. For the deal to go through, Stargate’s token holders have to approve it. And not just with a simple majority. The vote needs approval from 70 percent of veSTG holders and must meet a specific quorum.
Wormhole计划更高价收购Stargate，要求暂停LayerZero收购投票…
— 哈世链闻【下载APP追热点】 (@HashNewsHK) August 21, 2025
Wormhole Pushes Back on Valuation
Wormhole doesn’t think the offer matches the actual strength of Stargate’s position. The protocol has more than $92 million in its treasury, most of it in stablecoins and Ethereum. Beyond that, Stargate has been moving serious volume. In July alone, it processed nearly $4 billion in bridge transfers. That’s a tenfold increase from last year. With nearly $350 million in total value locked across dozens of chains, Wormhole believes Stargate is worth more than what’s on the table.
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A Call to Pause the Vote
Wormhole has asked for a short pause in the voting process. The reason is simple. They want the chance to submit a competing proposal. They argue that combining Stargate’s liquidity and user base with Wormhole’s infrastructure could bring better long-term value. They also believe users deserve time to consider options beyond what LayerZero has proposed.
LayerZero Holds Its Ground
LayerZero is defending its proposal. From their perspective, the token swap already includes a fair premium based on Stargate’s market price and fundamentals. They see it as a way to align both projects, bring order to their resource allocation, and fund future buybacks for the ZRO token using Stargate’s revenue. The team believes this is a logical next step rather than a hostile move.
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Governance Vote Now in Focus
The Stargate community vote is still underway. For it to pass, at least 1.2 million veSTG tokens need to be counted, and 70 percent of those votes must support the proposal. After facing community backlash, LayerZero did revise the plan to give protocol revenue to those holding locked tokens. But the update hasn’t put the issue to rest. The vote remains divisive.
What’s at Stake
This decision goes beyond one protocol buying another. It reflects bigger questions about how decentralized finance platforms should grow and who should be steering that direction. If LayerZero succeeds, it could mark a major step toward centralizing cross-chain liquidity under fewer umbrellas. If Wormhole gets its shot, it could introduce a model built more on collaboration than consolidation. Either way, Stargate’s next move will likely ripple through the entire bridge and interoperability landscape.
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Key Takeaways
- Wormhole is challenging LayerZero’s $110 million offer to acquire Stargate, questioning whether the valuation reflects the protocol’s true potential.
- LayerZero’s deal involves a ZRO token swap for all circulating STG tokens, but it requires 70% approval from veSTG holders with a quorum met.
- Wormhole argues Stargate’s $92 million treasury, $350M TVL, and $4B in monthly bridge volume point to a higher valuation and broader strategic value.
- Wormhole has requested a pause in the vote to submit a competing proposal, suggesting a more collaborative path forward.
- The outcome of this vote could set the tone for future DeFi mergers, raising questions about centralization versus protocol alignment.
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