Serum, a decentralized exchange (DEX) native to the Solana network, has notified its community that the bankruptcy of its funders -Alameda and FTX- has made its program practically inactive.
The team behind the project shared that “there is hope”, despite its continuing challenges, due to the community option available to “fork” Serum.
What’s next for @ProjectSerum
With the collapse of Alameda and FTX, the Serum program on mainnet became defunct.
As upgrade authority is held by FTX, security is in jeopardy, leading to protocols like @JupiterExchange and @RaydiumProtocol moving away from Serum.
—Serum (@ProjectSerum) November 29, 2022
According to the announcement, “a community-wide effort to fork Serum is going from strength to strength.” OpenBook, the community-led fork of the Serum V3 program, is now live on the Solana mainnet with daily volume of over a million dollars, supported by the continuous efforts to expand it and grow its liquidity.
However, the existence of OpenBook poses a threat to Serum, since “with the existence of Openbook, the volume and liquidity of Serum have fallen to almost zero”, since users and protocols prefer Openbook because it is a more secure option after the security risks associated with “old Serum code” being compromised in the FTX hack.
In regards to its SRM token, the DEX shared that the “future of SRM is uncertain”, because members of the community seem to be divided on the matter. Some believe that it should continue to be used “for discounts”, while others believe that it should not be used at all due to its exposure to FTX and Alameda.
On November 12, We tell you that FTX was hacked with the wallets linked to the exchange and those of FTX US being stripped of USD 659 million in total, as reported by Nansen.
Following the FTX hack, Solana developers forked the widely used token liquidity center after it was compromised in the series of unauthorized transactions. On November 12, Solana co-founder Anatoly Yakovenko tweeted that developers who rely on Serum were forking code after the updated key was compromised, sharing that many “protocols rely on Serum marketplaces for liquidity and liquidations”.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.