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One of the aftereffects of the FTX meltdown for Solana was the need to fork (replace) Serum, the OG order book on Solana due to key control risk.
The Solana defi community worked together to create OpenBook https://twitter.com/openbookdex
How has Solana defi responded to the risks that Serum suddenly presented and has there been any traction on Openbook so far? How has liquidity flowed through Solana defi? What programs seemed to be most affected by the replacement of Serum? Does it seem like defi on Solana is becoming more decentralized?
Introduction
What is Solana?
Solana is one of the most popular cryptocurrencies among more than 10,000 that currently exist. The cryptocurrency platform is called Solana, while the individual unit is called a sol.
Created by Anatoly Yakovenko, Solana operates on a decentralized computer network using a ledger called blockchain. This blockchain database manages and tracks the currency, and effectively records every transaction that’s ever occurred in it, like a long running receipt. The computer network records the transactions in the currency and verifies the data’s integrity.
This decentralized setup makes the network more robust, and users can make transactions without the need of an intermediary. Solana calls itself the fastest blockchain in the world and touts its ability to verify 65,000 transactions per second at a cost of less than a penny each.
Liquidity hub Serum forked by developers after FTX hack
Solana’s developers forked the widely used token liquidity hub Serum after being compromised by a hack on the bankruptcy exchange FTX on Nov. 11 that led to a series of unauthorized transactions.
According to pseudonymous developer Mango Max on Twitter, a “verified build of the same version has been made and deployed” on Nov 12. Additionally, the upgrade authority and fee revenues “have been changed and are now managed by a multi-sig controlled by a team of trusted developers.” Serum (SRM) and ==MegaSerum (MSRM)== tokens, as well as fee discounts, were not changed and were working as before.
The development took place on the weekend. Solana co-founder ==Anatoly Yakovenko== tweeted that developers depending on serum were forking the code after the upgraded key was compromised, adding that many “protocols depend on serum markets for liquidity and liquidations.”
In a Twitter thread, Mango Max said that the Serum update key was not controlled by the Serum decentralized autonomous organization (DAO) but by a private key connected to FTX and no one could confirm who controlled the keys. The private key was necessary to update the original version of Serum, leading the developers to fork the code, as the private key is under FTX control.
Mango Max also noted that:
Open Book
is a community-led fork of the Serum V3 program. The CLOB formerly known as Serum V3.
analyze
Description
Billionaire and FTX co-founder Sam Bankman-Fried said the leading crypto asset exchange aims to make a number of acquisitions and could spend up to $2 billion on such efforts. The FTX chief executive officer highlighted in a recent interview that a fraction of the funds raised by the company were “explicitly viewed from a potential acquisition angle.”
FTX Executive Sam Bankman-Fried Says Funds Raised Could Be Leveraged for Acquisitions
Sam Bankman-Fried spoke in an interview with Bloomberg’s Allyson Versprille and Yueqi Yang on Friday and explained that FTX is thinking about expansion moves and acquisitions. The crypto exchange FTX and its parent company West Realm Shire Services Inc. have raised over $2 billion from investors.
FTX trade volume data shows it is the second-largest cryptocurrency trading platform below Binance in terms of global trade volume. During the past 24 hours, FTX has recorded $1.56 billion in crypto trades with its 338 coins and 524 trading pairs.
Description
Bankman-Fried explained during the interview with Bloomberg’s Versprille and Yang that the company’s war chest of funds could be leveraged for a number of acquisitions.
“FTX is a profitable company,” the FTX executive explained. “You can look at the amount that we’ve raised over the last year or two – it’s a few billion dollars. That gives maybe a sense of where we are in terms of cash that was explicitly viewed from a potential acquisition angle.”
The FTX co-founder further detailed that the company wants to be able to offer customers more products so they can stay on the platform for all their needs, Bankman-Fried remarked. As far as acquisitions are concerned, Bankman-Fried said the firm is keeping a focused lookout. The FTX executive added
The developers of Solana wanted to fork Ser after compromising the FTX flaw that led to hackers withdrawing more than $400 million from the bankrupt exchange. Since FTX was involved in the development of Serum, many developers claim that hacking FTX can affect the decentralized network. The fork was necessary because "someone at FTX controls the private key who can control the original code and the key may have been compromised." According to the developer of this fork, Mango Maxlui: "The key to update the serum program was not controlled by the organization itself, but by a private key connected to FTX".
Description
After the collapse of the cryptocurrency exchange FTX, politicians and lawmakers increased the oversight of digital currencies. FTX, which was the third largest cryptocurrency exchange in the world, declared bankruptcy in less than a week. FTX, hedge fund Alameda Research, and many businesses affiliated with the exchange filed for bankruptcy, including FTX America. Sam Bankman-Fried, CEO and founder of this company has also resigned. Bankman Fried, whose net worth was recently estimated at $23 billion, has long supported Democrats in politics. According to Forbes and Bloomberg, which closely monitor the net worth of the world's richest people, his net worth has
Description
completely disappeared.
Venture capital firm Sequoia Capital announced Thursday that it will reduce its entire stake in FTX, worth approximately $215 million. Additionally, BlockFi, which was saved by FTX's CEO early last summer, said it was "shocked and disappointed" by the news about FTX and Alameda. In its final statement, the company promised that any future updates would be "smaller than what our customers and other stakeholders are used to." Finally, it is worth noting that Bitcoin fell after the recent events and is now trading at less than $17,000. Before the FTX issues, when Bitcoin was around $20,000 for months, Bitcoin briefly fell to around $15,500.
Description
When MF Global commingled client assets with its bets about a decade ago, the financial institution effectively collapsed. In its bankruptcy filing, FTX cited more than 130 related companies worldwide. This company has estimated the value of its commitments between 10 and 50 billion dollars. John Ray III, a veteran bankruptcy litigator best known for untangling the Enron mess, was named the company's new CEO. The FTX bankruptcy will undoubtedly be one of the most challenging events of recent times. It takes months to determine who owes what; Because the company named more than 100,000 creditors in its filing, and all of its customers are actually creditors because they put their money into FTX.
Conclusion
Negative consequences of FTX exchange bankruptcy: FTX affiliates are holding a meeting with their investors. Demand for stricter regulation of the cryptocurrency industry is growing among politicians and regulators. The price of Bitcoin and other altcoins went down sharply. According to the latest published reports, the total market value of digital currencies decreased by nearly 150 billion dollars last week. The collapse of FTX exchange goes beyond financial losses. Major league baseball and Formula One matches were two important sports events sponsored by this company. As a result of Miami-Dade County's decision to end its partnership with FTX, the Miami Heat's home arena will no longer be known as FTX Arena.
Methodology
> I have used
> solana.core.dim_labels
>
> solana.core.fact_swaps
>
> solana.core.fact_transfers
>
> solana.core.fact_events
>
> solana.core.fact_staking_lp_actions
>
> address contract
>
> 'srmqPvymJeFKQ4zGQed1GFppgkRHL9kaELCbyksJtPX' 9xQeWvG816bUx9EPjHmaT23yvVM2ZWbrrpZb9PusVFin',
>
> 'EUqojwWA2rd19FZrzeBncJsm38Jm1hEhE3zsmX3bRc2o',
>
> '4ckmDgGdxQoPDLUkDT3vHgSAkzA3QRdNq5ywwY4sUSJn',
>
> 'BJ3jrUzddfuSrZHXSCxMUUQsjKEyLmuuyZebkcaFp2fg'
>
> \
> to get the charts, tables and data above. > > and I got an idea from the codes of this dashboard > >
About Me
Discord: superfly#5104
Twitter: superfly_5104
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