Wormhole has entered the bidding for the bridging service Stargate, offering a bid higher than LayerZero’s initial $110 million token-swap proposal.
It seeks to postpone the Snapshot vote to allow the community to consider its offer.
Stargate’s metrics highlight the appeal. The bridge processed $4 billion in July, has $345 million in TVL, and maintains a treasury of $92 million in stablecoins and ether, along with $55 million in STG and other assets. The annual revenue is around $2 million.
“Based on our initial review, we believe that STG holders deserve a more competitive process, and we are ready to submit a significantly higher bid,” the proposal stated.
LayerZero’s proposal involves transferring both the treasury and future earnings, which critics argue undervalues the assets. Wormhole contends these terms disadvantage tokenholders, asserting that “STG holders deserve better.”
A partnership between Wormhole and Stargate would form one of the largest cross-chain hubs in crypto, combining Stargate’s unified liquidity pools with Wormhole’s integrations across numerous networks. The foundation claims this would enhance volume and long-term stability for both ecosystems.
“The Wormhole Foundation recognizes unrealized value in the Stargate brand, protocol, and protocol assets,” the proposal emphasized. “We are confident that successfully merging Stargate with the Wormhole ecosystem will create immediate and long-term value for current STG holders, as well as for existing and future Wormhole (W) holders.”
Wormhole has requested a five-day delay in the vote, seeking additional time for due diligence and a more equitable process.
Read more: LayerZero Proposes $110M Stargate Token Merger in Consolidation Play
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