Around the same time a South Korean court issued an arrest warrant for Terra co-founder Do Kwon, Apollo DAO, a decentralized autonomous organization built on the Terra blockchain, said that closed their vaults in Terra Classic. The project developers wrote:
“Since the collapse of Terra, Apollo has continued to maintain their LP vaults [Proveedor de Liquidez] in Terra Classic; however, due to poor performance and the high level of maintenance required, it no longer makes sense to support the Terra Classic network.”
The Apollo DAO, made up of more than 10,000 token holders, built its vaults primarily for trading the Terra USD (USTC) stablecoin and Terra Luna (LUNC) token pairs. The value of both tokens has plummeted dramatically since May, and co-founder Do Kwon is currently wanted in South Korea for allegedly violating the country’s capital market laws. Furthermore, the project developers explained that Terra’s new proposal to tax 1.2% of each LUNC on-chain transaction would have been too difficult to implement on their platform without substantial capital.
“We will continue to assess the feasibility of relaunching our vaults in Terra Classic, however we would like these to be fully designed around Terra Classic requirements to ensure further product market fit.”
Apollo DAO says that its future is focused on liquid staking and the development of an Apollo vault on various Cosmos chains. At its launch last September, the total value locked, or TVL, on Apollo DAO reached a peak of about $200 million. At the time of writing, the TVL of Apollo DAO has fallen below $125,000. Users are encouraged to withdraw any remaining funds prior to the launch of Terra’s new tax proposal.
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