The Wormhole Foundation (WF) took part in the Stargate Finance bid race and challenged the $110 million acquisition proposed by Layerzero.
in Statement on August 20th Through X, WF claimed that Layerzero’s offer was a major underestimation of the cross-chain bridge protocol.
The Layerzero Foundation announced it Acquisition proposal for August 10thoffers to buy all circular STG tokens for $0.1675 per token via Zro token swap.
The proposal requires approval from STG holders through Stargate’s governance process and requires a 70% approval threshold required for the passage.
The Wormhole Foundation argued that the Layer Zero bid does not reflect Stargate’s true value, citing the protocol’s Treasury holdings and recent performance metrics.
Additionally, Wormhole shares Stargate maintains more than $92 million in financial assets, including $76 million in Stablecoins and $16 million in Ethereum, showing significant growth momentum.
Performance promotes assessment conflict
Stargate processed $4 billion in bridge volume in July 2025, representing a 10-fold increase from the previous year, according to on-chain data. As August’s. A total of $348 million is locked across more than 20,000 chains (TVL).
According to the Wormhole Foundation:
“STG holders are worth better. Current bids underestimate the protocol’s assets, brands, codebases and teams.”
WF added that these foundations justify “meaning offers” more than the assessments proposed by Layerzero.
The Layerzero Foundation defends pricing and is focusing on Stargate’s support of $0.144444 per circular token compared to a trading price of $0.1637 per token at the time of proposal. Based on that calculation, he added that the offer represents the premium for both metrics.
The difference beyond the offer
Layerzero will place the acquisition as a consolidation of ecosystems focusing on Stargate’s established infrastructure and user base. The foundation plans to direct all future Stargate excess revenues towards Zro token buybacks.
Furthermore, Layerzero argued that unified governance eliminates resource conflicts between potentially competitive protocols.
At the same time, the Wormhole Foundation proposed an alternative vision that combines “Stargate’s unified liquidity pool and a broad ecosystem of integration.”
The foundation said the approach would generate “higher volumes, higher revenues, greater stickiness” and benefit both the STG and the W token holder. It also called for an ongoing five-year suspension in Layerzero’s proposal vote to allow time for due diligence and preparation for bids.
The governance vote requires 1.2 million best token quorum with 70% approval for the proposed Layer Zero Pass. The proposal was amended to provide additional compensation to Vestg Stakers through a six-month revenue distribution.
The fix came after criticism about equal treatment of locked and unlocked tokens.
