DeFi

Phezzan Shuts Down In Team Effort, Discord Sever Closes After 24 Hours

Key Points:

Phezzan had to close after the team’s efforts were behind.
Before that, the founders spent their own money to maintain the project.
This is one of the DeFi protocols affected after the Terra/FTX crisis.

The zkSync ecosystem decentralized perpetual contract agreement Phezzan Protocol announced that after many discussions, the team decided to close Phezzan.

The Phezzan Twitter account will never be updated again, and its Discord will be closed within 24 hours. Additionally, the protocol code will be open-sourced on GitHub.

According to previous news by Coincu, Phezzan Protocol announced on April 6 that it had decided to close due to lack of funds, but said yesterday that a new team has taken over the Phezzan Protocol project, will assume the management role of the project, and will conduct IDO as soon as possible to solve the working capital problem.

Jack and Roland, the protocol’s two founders, are said to have tried to save the project as they burned through more than $50,000 a month in vain. A further discussion among the internal team took place, but they don’t think “there will be sufficient demand in the near-team to build a good business.” In addition, the team suggests GMX or dYdX as a close substitute for a DEX that democratizes perpetual trading for everybody.

Phezzan was one of the victims that were hit hard by the Terra/FTX crash last year. The fact that DeFi protocols struggle to raise capital and find liquidity remains an issue after the crises. Not only Phezzan Protocol, major companies in the crypto industry, such as BlockFi, Celsius… also had to file for bankruptcy because of great losses.

With the zkSync 2.0 platform, Phezzan Protocol is a breakthrough DEX Orderbook with Permissionless LP.

In the Orderbook, the protocol employs the retail liquidity model, which maximizes capital efficiency and enhances the trading experience of the customer. Simultaneously, it maximizes liquidity via the use of a multi-asset collateral system, which allows LP tokens to be used as collateral while still being rewarded with Traders’ platform fees and PnL.

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Harold

Coincu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.