Saddle Finance, an Ethereum-based crypto trading protocol, is planning to shut down its operations and distribute its treasury to investors. The founder, Sunil Srivatsa, has proposed liquidating the treasury into Arbitrum tokens and airdropping the proceeds to holders of Saddle’s SDL and veSDL tokens. VeSDL holders will receive four times the allocation. This decision comes after the recent hack of decentralized exchange giant Curve, which highlighted the potential vulnerabilities in DeFi projects. Saddle Finance, which has faced allegations of cloning Curve’s codebase, will have its developers step back from the project by September 30, 2023. The platform currently holds around $2 million worth of user deposits. The snapshot for determining eligible recipients of the allocation has already taken place.
Main breakdowns:
1. Saddle Finance plans to shut down and distribute its treasury to investors.
2. The treasury will be converted into Arbitrum tokens and airdropped to SDL and veSDL token holders.
3. The decision is influenced by the recent hack of decentralized exchange Curve and the need to address potential vulnerabilities.
4. Saddle Finance has faced allegations of cloning Curve’s codebase in the past.
5. Developers will step back from the project by September 30, 2023.
Hot Take:
Saddle Finance’s decision to shut down and distribute its treasury reflects the growing concerns within the DeFi ecosystem. The recent hack of Curve has highlighted the need for stronger security measures and raised questions about the reliability of similar platforms. While it is a responsible move to address potential vulnerabilities, it also raises concerns about the overall stability and trustworthiness of decentralized trading protocols. These incidents serve as a reminder for investors to exercise caution and thoroughly assess the security measures implemented by DeFi projects before engaging with them.
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