The battle for dominance in the cross-chain messaging sector intensified this week as the Wormhole Foundation announced plans to submit a competing offer to acquire Stargate, directly challenging a proposal from rival Layerzero. The move signals the potential for a high-stakes bidding war that could reshape the future of one of the industry’s most liquid bridge protocols.

A Rival Bid Emerges

On Wednesday, Wormhole revealed its intent to present a “meaningfully higher bid” for Stargate than Layerzero’s current offer. According to Wormhole, Stargate’s token holders “deserve a more competitive process” that properly values the protocol’s substantial treasury, ongoing revenues, and long-term growth potential.

To advance its proposal, Wormhole has requested a five-business-day suspension of the active Snapshot vote on Layerzero’s deal to finalize its bid.

Layerzero’s Offer: Token Swap and DAO Dissolution

Layerzero’s acquisition plan, valued at around $110 million when announced, is currently undergoing a seven-day community vote. The deal involves:

• Swapping all STG tokens for Layerzero’s ZRO tokens at a fixed rate.
• Dissolving the Stargate DAO.
• Redirecting all future protocol revenue toward ZRO buybacks.

To pass, the offer requires a 70% approval threshold from Stargate’s community.

Wormhole’s Counterpoint

Wormhole has pushed back strongly, arguing that the proposal undervalues Stargate’s financial position. The foundation highlighted that Stargate’s treasury alone contains about $92 million in stablecoins and ether, excluding its native STG tokens.

In Wormhole’s view, Layerzero’s deal effectively transfers all of Stargate’s assets and future revenues in exchange for a relatively weak token-based consideration.

Instead, Wormhole envisions a merger that would integrate Stargate’s liquidity depth with Wormhole’s existing cross-chain integrations, creating what it calls a “single, market-dominant ecosystem.”

Due Diligence and Next Steps

To move forward, Wormhole has requested access to Stargate’s detailed financial and operational data, including a full accounting of assets and outstanding liabilities.

The foundation argues that transparency is critical before any long-term acquisition decision can be finalized.

Meanwhile, the Layerzero vote remains scheduled to close on August 24, 2025, leaving Stargate’s community with a pivotal choice: approve the current deal or hold out for a potentially superior offer from Wormhole.

What’s at Stake for the Cross-Chain Market

The Stargate protocol has been one of the most important liquidity hubs for cross-chain DeFi users. Its integration with major ecosystems has made it a core piece of the multi-chain future.

• For Layerzero, acquiring Stargate would consolidate control over messaging and liquidity, expanding its influence in DeFi infrastructure.
• For Wormhole, adding Stargate’s liquidity would supercharge its integrations and positioning, allowing it to rival or even surpass Layerzero in the cross-chain wars.

For token holders and the broader DeFi community, the acquisition outcome will determine not only who controls Stargate’s assets but also the governance model and incentives that shape its long-term growth.