Fantom DEX rescued at eleventh hour following planned shutdown


SpiritSwap, a decentralized change (DEX) on Fantom, will not shut its doorways in September after having treasury funds caught on troubled cross-chain protocol Multichain.

In an Aug. 16 neighborhood vote, SpiritSwap customers handed a decision to switch the mission to Power, a fellow nonfungible token platform and DEX that can also be based mostly on Fantom. In consideration, Power will deploy 200,000 USD Coin (USDC) into the SpiritSwap treasury.

“Initially, I had requested a deposit of 20-30K to the treasury to cover the essential costs of SpiritSwap. However, the Power team is willing to go above and beyond by depositing 200,000 USDC,” wrote Nzaru, head manager at SpiritSwap, who announced that he would depart the DEX after receiving a new job offer. “On the 30th, I will finalize the new team and conduct orientation sessions to prepare for the upcoming month,” he mentioned.

Snapshot of the SpiritSwap takeover proposalSource: Snapshot

Prior to the acquisition, Power builders acknowledged: “We have the means and the desire to inherent SpiritSwap. This would be a direct benefit to the PNFT holders, the POWER community, and the SpiritSwap community.”

On Aug. 9, SpiritSwap mentioned it will wind down operations by Sept. 1 if it couldn’t discover a group to take over after the Multichain exploit drained its entire treasury. Interestingly, Power was additionally uncovered to the Multichain fiasco however solely suffered “small” losses, as its treasury property weren’t bridged to Multichain. 

After months of hypothesis, Multichain’s builders disclosed in July that co-founder and CEO Zhanojung He was arrested by Chinese police again in May on undisclosed costs. He allegedly held all entry to Multichain personal keys and servers for the $1.5 billion protocol when he was detained. Despite a lack of know-how on his detention, funds belonging to Multichain and its customers have been swapped for stablecoins in addition to personal cash and transferred out of the protocol. Some victims have since alleged that the Chinese police are concerned in an elaborate embezzlement scheme involving customers’ funds. 

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