SpiritSwap, a decentralized exchange (DEX) of Fantom, will not close its operations in September after it received a takeover offer from Power, another DeFi protocol based on Fantom. The proposed closure is a result of the cross-chain protocol The collapse of Multichainwhich has a significant impact on the Fantom ecosystem.
On August 9, SpiritSwap announced on Discord that it is “cutting” operations and is looking for a team to take over the project after its coffers are depleted by multichain exploitation. The protocol initially planned to close on September 1, 2023, but it appears that will not happen after the intervention of Power.
This will come as a relief to many members of the SpiritSwap community, especially those with a native SPIRIT token locked to the protocol. According to protocol websitethere are currently over 410 million SPIRIT tokens locked.
Power To Deposit 200,000 USDC Into SpiritiSwap’s Treasury
On August 16, the SpiritSwap community the proposal was approved which will provide the protocol keys to Power, a non-fungible token platform of Fantom. Power is now proposing to deposit 200,000 USDC into SpiritSwap’s coffers.
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The group behind the NFT platform stated the proposal that the deployment of these funds to the treasury is the first step in ensuring that SpiritSwap survives. Meanwhile, Power claims to hold more than $1 million in liquid assets in several chains “ready to mobilize for use”.
In the proposal, the Power team clarified that it is also developing its own decentralized exchange, PowerSwap. Then, it outlined plans to integrate some of the new DEX designs into SpiritSwap.
It is worth mentioning that Power is also affected by the exploitation of Multichain. Fortunately, the treasury assets of the protocol were not linked to Multichain, which led to relatively small losses.
Multichain Exploit – The Effect Of Fantom
The Fantom ecosystem was the biggest victim of the Multichain exploit in July, which resulted in a total loss of over $126 million. The attack appears to have specifically targeted the protocol’s Fantom bridge, draining more than $120 million worth of assets.
As noted earlier, the ripple effect of the Multichain hack has spread to various Fantom blockchain projects. As a result, the total value locked (TVL) in the network continues to decrease.
Fantom has seen its TVL drop more than 61% since July 6 – the day of the Multichain exploit. As of this writing, the total amount locked in the network stands at about $86.2 million, according to data from DefiLlama.
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