Serum exchange rendered ‘defunct’ following the collapse of Alameda and FTX
The Solana-based decentralized change (DEX) has notified its neighborhood that the collapse of its backers — Alameda and FTX — has rendered its program “defunct”.
The group behind the undertaking shared that “there may be hope”, despite its ongoing challenges, due to the neighborhood possibility out there to “fork” Serum.
What’s subsequent for @ProjectSerum
With the collapse of Alameda and FTX, the Serum program on mainnet grew to become defunct.
As improve authority is held by FTX, safety is in jeopardy, resulting in protocols like @JupiterExchange and @RaydiumProtocol transferring away from Serum.
— Serum (@ProjectSerum) November 29, 2022
In line with the announcement, “a community-wide effort to fork Serum goes sturdy”. OpenBook, the community-led fork of the Serum V3 program, is already reside on the Solana Mainnet with over $1M each day quantity, supported by steady efforts to broaden it and develop its liquidity.
The existence of OpenBook nevertheless poses a menace to Serum, as a result of “with Openbook’s existence, Serum’s quantity and liquidity has dropped to near-zero” as customers and protocols desire Openbook as a result of it’s a safer possibility following the safety dangers related to the “outdated Serum code” which was compromised within the FTX hack.
In relation to its SRM token, the DEX shared that the “way forward for SRM is unsure”, as neighborhood members seem divided on the topic. Some consider it ought to nonetheless be used “for reductions”, whereas others consider it shouldn’t be used in any respect as a result of its publicity to FTX and Alameda.
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On Nov 12, Cointelegraph reported that FTX was hacked with wallets tied to FTX and FTX US drained of $659 million in cumulative outflows, as reported by Nansen.
Following the FTX hack, Solana’s builders forked the broadly used token liquidity hub, Serum, after it was compromised within the sequence of unauthorized transactions. On Nov 12, Solana co-founder Anatoly Yakovenko tweeted that builders relying on Serum have been forking the code after the upgraded key was compromised, sharing that many “protocols rely upon serum markets for liquidity and liquidations.”
