FTX Hack: Exposed, Solana (SOL) Announces Divorce!

Serum, the liquidity hub developed by FTX, was reportedly affected by last Friday’s hack. Worried, many Solana developers are starting to react. They decided, the next day, to disconnect its DeFi protocols from this platform. The creation of a new version of Serum would be the appropriate solution to rule out any form of interference with FTX.

Solana, in danger after the FTX hack?

The fork of Serum as the only way out

I hope the developers who depend on Serum can get together and redeploy an immutable version as soon as possible. »

Anatoly Yakovenko judges that it is time to fork Serum’s code as quickly as possible in order to regain control of it. Until now, someone at FTX held the private key for updating this program. However, FTX was the subject of a hack resulting in the siphoning of 400 million dollars on Friday. This probably compromised said key.

The Solana co-founder thinks that “ developers who depend on Serum forkent currently the program because the update key for the current version is compromised », Reports The Block.

Mango Max, pseudonymous developer on Solana, clarified that:

The Serum program update key was not controlled by its own organization [DAO], but by a private key connected to FTX. At this time, no one can confirm who controls this key and therefore has the power to update the Serum program, possibly deploying malicious code. “.

Towards a collective abandonment of Serum

Coindesk revealed that Solana’s DeFi protocols gradually disconnected from Serum due to a lack of trust in Sam Bankman-Fried and his team. The data site Nomics, which constantly monitored this on-chain liquidity platform, spoke of an 80% drop in volume in just 24 hours. Serum, which recorded $32 billion this year alone, saw just $3.5 million in transactions last Saturday.

Confirming that we disabled Project Serum as a source of liquidity a few hours ago due to security concerns regarding upgrade authorities, we also encouraged our integrators to do the same “, announced a spokesperson for Jupiter. The latter is none other than the largest DEX aggregator on Solana.

SBF praising the virtues of Serum in 2020

Other projects also followed Jupiter in this defection, Magic Eden, Phantom, Mango Markets, Raydium, Mercurial Finance, among others… All in all, the question of decentralization in Serum and in FTX really leaves something to be desired.

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