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DeFi

Fantom DEX SpiritSwap May Be Stopped After September 1 Due To Multichain Issues

August 9, 2023 - Around 2 mins mins to read

Key Points:

  • Multichain incidents drain funds, affecting Fantom DEX SpiritSwap’s daily operations.
  • SpiritSwap is looking for a team takeover and will close on September 1 if no successor is found.
  • A recent exploit disrupts Fantom’s DeFi, prompting reassurance efforts by the Fantom Foundation.
The popular decentralized exchange (DEX) project, SpiritSwap, within the Fantom ecosystem, has encountered a significant setback due to the recent Multichain incident.
Fantom DEX SpiritSwap May Be Stopped After September 1 Due To Multichain Issues
Fantom DEX SpiritSwap May Be Stopped After September 1 Due To Multichain Issues 2

In an official statement conveyed through Discord, SpiritSwap revealed that the Multichain incident had left the project unable to cover essential expenses such as ongoing development, operational wages, monthly overheads, and marketing initiatives.

To address this crisis, SpiritSwap is actively seeking a new team to assume control of the project’s operations. Should a suitable successor not be identified, SpiritSwap will regretfully halt its operations on September 1st. Users are urged to withdraw their liquidity holdings prior to the impending shutdown.

SpiritSwap’s significance within the Fantom ecosystem cannot be understated. Functioning as an Automated Market Maker (AMM) platform, akin to Uniswap on Ethereum or PancakeSwap on Binance Smart Chain (BSC), SpiritSwap facilitates trading and liquidity provisioning. Liquidity providers engage with trading pairs, earning both trading fees and rewards from the project’s farming programs.

Moreover, in response to this challenging situation, SpiritSwap has expressed its intention to provide further updates, particularly related to the ConvergeX initiative, in the days ahead.

The recent Multichain exploit has introduced irreversible losses, substantially disrupting the decentralized finance (DeFi) landscape on the Fantom network.

Since the emergence of Multichain’s issues in May, the Fantom Foundation has been diligently working to reassure users about its ongoing commitment to the protocol and its associated projects.

As the Fantom ecosystem grapples with these challenges, the fate of SpiritSwap hangs in the balance, dependent on the discovery of a new team to reinvigorate its operations and continue its contribution to the decentralized finance space.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

AMM

Dex

Fantom

multichain

SpiritSwap

Avatar of Harold

Author

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.
DeFi

Fantom DEX SpiritSwap May Be Stopped After September 1 Due To Multichain Issues

Key Points:

  • Multichain incidents drain funds, affecting Fantom DEX SpiritSwap’s daily operations.
  • SpiritSwap is looking for a team takeover and will close on September 1 if no successor is found.
  • A recent exploit disrupts Fantom’s DeFi, prompting reassurance efforts by the Fantom Foundation.
The popular decentralized exchange (DEX) project, SpiritSwap, within the Fantom ecosystem, has encountered a significant setback due to the recent Multichain incident.
Fantom DEX SpiritSwap May Be Stopped After September 1 Due To Multichain Issues
Fantom DEX SpiritSwap May Be Stopped After September 1 Due To Multichain Issues 4

In an official statement conveyed through Discord, SpiritSwap revealed that the Multichain incident had left the project unable to cover essential expenses such as ongoing development, operational wages, monthly overheads, and marketing initiatives.

To address this crisis, SpiritSwap is actively seeking a new team to assume control of the project’s operations. Should a suitable successor not be identified, SpiritSwap will regretfully halt its operations on September 1st. Users are urged to withdraw their liquidity holdings prior to the impending shutdown.

SpiritSwap’s significance within the Fantom ecosystem cannot be understated. Functioning as an Automated Market Maker (AMM) platform, akin to Uniswap on Ethereum or PancakeSwap on Binance Smart Chain (BSC), SpiritSwap facilitates trading and liquidity provisioning. Liquidity providers engage with trading pairs, earning both trading fees and rewards from the project’s farming programs.

Moreover, in response to this challenging situation, SpiritSwap has expressed its intention to provide further updates, particularly related to the ConvergeX initiative, in the days ahead.

The recent Multichain exploit has introduced irreversible losses, substantially disrupting the decentralized finance (DeFi) landscape on the Fantom network.

Since the emergence of Multichain’s issues in May, the Fantom Foundation has been diligently working to reassure users about its ongoing commitment to the protocol and its associated projects.

As the Fantom ecosystem grapples with these challenges, the fate of SpiritSwap hangs in the balance, dependent on the discovery of a new team to reinvigorate its operations and continue its contribution to the decentralized finance space.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.