Serum exchange has been rendered ‘defunct’ following the collapse of the crypto trading platform, Alameda and crypto exchange FTX
The Solana-based decentralized exchange (DEX) has informed its community that its program is now “defunct” due to the failure of its backers, FTX and Alameda.Despite ongoing difficulties, the project’s team expressed that “there is hope” due to the community option available to “fork” Serum.
“A community-wide effort to fork Serum is going strong,” the announcement stated. There are ongoing efforts to expand and increase the liquidity of OpenBook, the community-led fork of the Serum V3 program that is already operational on the Solana Mainnet with a daily volume of over $1M.
Although users and protocols prefer Openbook because it is a safer option in light of the security risks associated with the “old Serum code,” which was compromised in the FTX hack, the existence of OpenBook poses a threat to Serum.
As a result, “Serum’s volume and liquidity has dropped to near-zero” as a result of Openbook. The DEX stated that the future of its SRM token is “uncertain” because there is disagreement in the community regarding it.
Due to its exposure to FTX and Alameda, some think it should still be used “for discounts,” while others think it shouldn’t be used at all. According to Nansen, FTX was hacked on November 12 and wallets connected to FTX and FTX US were drained of $659 million in total outflows.
The widely used Serum token liquidity hub was forked by the Solana developers after the FTX hack exposed a string of unauthorized transactions that had compromised it. On Nov 12, Solana co-founder Anatoly Yakovenko tweeted that developers depending on Serum were forking the code after the upgraded key was compromised, sharing that many “protocols depend on serum markets for liquidity and liquidations.”