Wormhole Challenges LayerZero's Stargate Acquisition Bid

Wormhole Eyes Stargate, Counters LayerZero Offer

The Wormhole Foundation has publicly announced its intention to submit a rival bid for Stargate, directly challenging LayerZero Foundation's existing $110 million offer. This move sets the stage for a potential bidding war over the cross-chain bridge protocol.

Key Takeaways:

• Wormhole Foundation plans to submit a competing bid for the Stargate protocol acquisition.
• LayerZero's $110 million offer now faces a serious challenge.
• Stargate boasts strong growth metrics, including $4 billion in bridge volume and $345 million in TVL, according to the Wormhole Foundation.

According to a recent announcement, the Wormhole Foundation believes that LayerZero’s current proposal significantly undervalues Stargate, particularly when considering its assets and recent performance. In July, Stargate facilitated $4 billion in bridge volume and maintained $345 million in total value locked (TVL).

"STG holders deserve better," stated the Wormhole Foundation, suggesting that a competitive bidding process could unlock greater value for all stakeholders. The foundation emphasizes the value of Stargate's assets, brand recognition, codebase, and its team.

The Wormhole Foundation envisions a synergistic relationship between Wormhole and Stargate, creating a powerhouse in cross-chain infrastructure. The combined entity, they argue, would lead to increased transaction volumes, higher revenues, and improved ecosystem resilience. This partnership would, in turn, increase the long-term value for both STG and W token holders.

"Stargate provides deep, unified liquidity pools and proven user demand, while Wormhole offers extensive ecosystem integration across numerous blockchains and protocols, including key growth areas like RWAs," the Foundation noted.

To properly assess and formulate its offer, the Wormhole Foundation is requesting a delay in the ongoing Snapshot vote related to the LayerZero proposal. The foundation is also seeking detailed information from Stargate regarding its assets, user metrics, team structure, and financial data.

As protocols like Stargate become increasingly vital to the DeFi ecosystem, projects must ensure their code is secure. Platforms such as Codeum provide essential auditing services for smart contracts, helping to safeguard against vulnerabilities.