Serum exchange rendered ‘defunct’ following the collapse of Alameda and FTX

The Solana-based decentralized change (DEX) has notified its group that the collapse of its backers — Alameda and FTX — has rendered its program “defunct”. 

The group behind the mission shared that “there’s hope”, despite its ongoing challenges, due to the group choice out there to “fork” Serum. 

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What’s subsequent for @ProjectSerum

With the collapse of Alameda and FTX, the Serum program on mainnet turned 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 response to the announcement, “a community-wide effort to fork Serum goes robust”. OpenBook, the community-led fork of the Serum V3 program, is already reside on the Solana Mainnet with over $1M every day quantity, supported by steady efforts to develop 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customers and protocols desire Openbook as a result of it’s a safer choice following the safety dangers related to the “outdated Serum code” which was compromised within the FTX hack. 

On the subject of its SRM token, the DEX shared that the “way forward for SRM is unsure”, as group members seem divided on the topic. Some imagine it ought to nonetheless be used “for reductions”, whereas others imagine it shouldn’t be used in any respect as a consequence of its publicity to FTX and Alameda. 

Associated: BlockFi chapter submitting triggers a variety of group reactions

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 extensively 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 on serum markets for liquidity and liquidations.”