Quick take:
- The statement comes amid the outstanding LayerZero proposal to acquire Stargate for $110 million in a token swap deal.
- The LayerZero offer values one STG token at 0.08634 ZRO tokens, reflecting a value of $0.1675 per STG and $1.94 per ZRO.
- Wormhole believes the current bid “undervalues [Stargate Finance’s] assets, brand, codebase, and team.”
Wormhole Foundation has expressed its interest in acquiring Stargate Finance, a global liquidity layer that connects over 80 blockchains for the smooth movement of assets between chains.
The announcement comes amid the outstanding LayerZero proposal to acquire Stargate for $110 million in “ZRO for a treasury holding $76M+ in stables, $16M in ETH, and more.”
“STG holders deserve better. The current bid undervalues the protocol’s assets, brand, codebase, and team. We’re prepared to submit a meaningfully higher offer, and we believe a competitive process will drive even more value for everyone involved,” the Foundation said in a post on the X platform.
According to the proposal published on Discourse, LayerZero’s offer to Stargate values one STG token at 0.08634 ZRO tokens, reflecting a value of $0.1675 per STG and $1.94 per ZRO. However, Wormhole believes the current bid “undervalues the protocol’s assets, brand, codebase, and team.”
The Foundation said it is now “stepping up its intent to acquire Stargate to ensure holders get the fair deal they deserve.”
Wormhole Foundation has now requested a 5-business-day suspension of the ongoing Snapshot vote to prepare a better offer.
“This short delay allows us time to finalize our bid and conduct proper diligence – all in the interest of transparency and maximizing outcomes for STG holders,” the Foundation wrote.
Stargate Finance had $4B bridge volume in July, reflecting a 10x year-over-year growth, according to the LayerZero proposal. The protocol also boasts over $345 million in total value locked, as per DeFiLlama data, and has a projected $2M annual revenue across its interconnected network of over 80 chains.
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