Wormhole called for Stargate’s community to pause the ongoing governance vote for five days, giving it time to finalize due diligence and present its competing bid. The move signals the start of what could become a heated bidding war for one of DeFi’s fastest-growing projects.
LayerZero had originally proposed acquiring Stargate’s assets in exchange for $110 million worth of ZRO tokens. Those assets include approximately $92 million in stablecoins, Ethereum, and other holdings, as well as Stargate’s future protocol revenues.
The deal has drawn criticism from community members who argue that it undervalues Stargate’s business, which has seen robust growth in cross-chain activity. Concerns also emerged that LayerZero’s offer prices ongoing revenue streams too low, potentially shortchanging token holders.
Wormhole argues that Stargate’s fundamentals justify a stronger valuation. In July alone, Stargate processed $4 billion in bridge volume, a tenfold increase compared to the same period last year. The protocol is now integrated across more than 80 blockchains, giving it a significant footprint in the cross-chain ecosystem.
To ensure fairness, Wormhole urged Stargate to delay the current vote, saying this would allow the community to consider improved terms and potentially multiple offers.
Stargate’s reported assets include:
In addition, the protocol holds $345 million in total value locked (TVL) and generates roughly $2 million in annual revenue.
Wormhole emphasized that a merger could create a powerful cross-chain network. Stargate would contribute liquidity and proven adoption, while Wormhole would bring wide integration and ecosystem reach. Together, the foundation believes they could significantly boost bridge volumes, increase fee revenue, and deliver lasting value to stakeholders.
The outcome of this contest could reshape the competitive landscape for cross-chain interoperability, setting the stage for one of the most significant mergers in DeFi history.
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