NEW: Solana DeFi developers are racing to recreate Serum DEX, an FTX-controlled pillar of on-chain trading infrastructure possibly imperiled by last night’s breach. realDannyNelson reports
and Alameda, it has processed over $32 billion in volume this year, according to data site Nomics. But that activity has fallen off a cliff; it's seen just $3.5 million in trades in the last 24 hours, an 80% drop from the day before.of FTX has shattered projects’ confidence in the original Serum, three people familiar with the matter told CoinDesk. There’s of course Serum’s not-so-secret ties to Bankman-Fried.
Lending protocol Solend, Jupiter, automated market maker Raydium, stablecoin swap shop Mercurial Finance and other Solana-based DeFi traders, as well as centralized entities including Phantom wallet, limited their exposure to Serum Saturday morning. They disconnected price data oracles, shut down token trading pools or ceased trading on its central limit order book.
Serum was nominally governed by the vote of a community of holders of the project’s SRM token. But apart from voting on token grants, Serum’s so-called decentralized autonomous organization had little actual authority over the protocol, according to the pseudonymous Crypto Notte, a contributor to the Vyper protocol. Proposals to change how Serum operated would pass and go nowhere, he said.
In the past few months, Serum DAO had become a money tree for other protocols to shake token grants from, multiple sources in Solana DeFi said. Projects wanting to integrate with Serum would first suss out their proposal’s viability with major SRM holders and then pitch the community forum. Proposals that made it to a vote would usually pass with the backing of a single whale: a wallet that started with “Cuie.
James Moreau, a key contributor at Jet protocol, said the project is nearly finished building a DeFi product that integrates with Serum.
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