Serum - a decentralized exchange on the Solana ecosystem - has just announced that it will be shutting down due to the effects of the collapse of FTX - one of the major investors of the platform, and the team also refer users towards a community-led fork of the project.
FTX's impacts on Serum
According to the team, the security of the Serum project code was compromised when the FTX exchange faced a hack worth more than $500 million in early November. As soon as the vulnerability was exploited, Serum did not update in time and is currently in jeopardy. This led to many large partner projects such as Jupiter - the DEX aggregator on Solana - and Raydium in turn leaving Serum through disabling the $SRM liquidity source.
Previously, the FTX bankruptcy brought attention to SRM when last month's balance sheet contained more than $2 billion worth of the token. However, many questions arise around the authenticity of this number when the liquidity of $SRM is quite low - maybe FTX was behind token which is designed to serve the purposes of profitable trading for them.
Besides, 5 days ago, Binance also announced delisting trading pairs with $SRM - this is the exchange that concentrates most of the $SRM trading volume compared to Kraken, Kucoin or Gate.io.
All of the above events as catalysts push SRM into the final decision as it is now. Serums play a pretty important role across the Solana ecosystem as many protocols depend on the platform's liquidity.
However, the platform also support the community project which is the new fork version of the Serum v3 Program - OpenBook.
The hope from OpenBook
An effort from the community and led by Mango's Max - the developer of the Mango Markets lending platform - developing the Serum fork is going strong with many attempts to scale and increase liquidity. Jupiter also confirmed to establish a partnership with this platform.
The new project has been launched with a daily trading volume of over $1 million and includes pools of SOL/USDC, MSOL/USDC, USDT/USDC and wheETH/USD as well as reduced fees for SRM holders.
However, the future of the $SRM token is still undecided. The team hopes the community can contribute on the token plan and fee structure for Openbook.
In the condition that the market has not attracted strong cash flow with the original project not working and the future plans are uncertain, the expectation of good growth of a fork version like OpenBook will not be too high.
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