Wormhole has entered the bidding arena for the bridging service Stargate, promising a bid that exceeds LayerZero’s initial $110 million token-swap offer.
They are requesting a delay in the Snapshot vote to allow the community to consider their proposal.
The figures behind Stargate illustrate the appeal. The bridge processed $4 billion in July, boasts a total value locked (TVL) of $345 million, and has a treasury of $92 million in stablecoins and ether, along with $55 million in STG and other assets. The annual revenue sits around $2 million.
“From our preliminary assessment, we believe that STG holders are entitled to a more competitive bidding process, and we are ready to submit a significantly higher offer,” the proposal stated.
LayerZero’s offer involves transferring both the treasury and future revenue, a move critics label as undervalued. Wormhole argues that the terms shortchange tokenholders, insisting that “STG holders deserve better.”
A collaboration between Wormhole and Stargate would establish one of the largest cross-chain hubs in the crypto space, merging Stargate’s unified liquidity pools with Wormhole’s integrations across numerous networks. The foundation contends that this would enhance volume and ensure long-term stability for both ecosystems.
“The Wormhole Foundation recognizes untapped potential in the Stargate brand, protocol, and its assets,” the proposal emphasized. “We are confident that successfully integrating Stargate and the Wormhole ecosystem will deliver immediate and lasting value for current STG holders, as well as current and future Wormhole (W) holders.”
Wormhole has asked for a five-day postponement of the vote, seeking additional time for due diligence and a fairer bidding process.
Read more: LayerZero Proposes $110M Stargate Token Merger in Consolidation Play
