The Wormhole Foundation (WF) has formally challenged LayerZero's proposed $110 million acquisition of cross-chain bridge protocol Stargate Finance, arguing the offer significantly undervalues the protocol. LayerZero Foundation announced its acquisition proposal on August 10, offering to purchase all circulating STG tokens at $0.1675 per token through a swap for ZRO tokens.
Wormhole contends that LayerZero's bid fails to reflect Stargate's true value, citing the protocol's substantial treasury holdings of over $92 million ($76 million in stablecoins and $16 million in Ethereum) and strong performance metrics. On-chain data shows Stargate processed $4 billion in bridge volume during July 2025, representing a 10x year-over-year increase, with $348 million in total value locked (TVL) across more than 80 chains.
The acquisition requires approval from STG holders through Stargate's governance process, needing a 70% approval threshold with a 1.2 million veSTG token quorum. Wormhole has requested a five-business-day suspension of the ongoing vote to allow time for due diligence and preparation of a competitive bid. LayerZero has defended its pricing, noting that its offer represents a premium based on their calculations, while also amending the proposal to provide additional compensation for veSTG stakers through six months of revenue distribution.