Fantom DEX rescued at eleventh hour following planned shutdown

SpiritSwap, a decentralized speech (DEX) connected Fantom, volition nary longer unopen its doors successful September aft having treasury funds stuck connected troubled cross-chain protocol Multichain.

In an Aug. 16 assemblage vote, SpiritSwap users passed a solution to transportation the task to Power, a chap nonfungible token level and DEX that is besides based connected Fantom. In consideration, Power volition deploy 200,000 USD Coin (USDC) into the SpiritSwap treasury.

“Initially, I had requested a deposit of 20-30K to the treasury to screen the indispensable costs of SpiritSwap. However, the Power squad is consenting to spell supra and beyond by depositing 200,000 USDC," wrote Nzaru, caput manager astatine SpiritSwap, who announced that helium would depart the DEX aft receiving a caller occupation offer. “On the 30th, I volition finalize the caller squad and behaviour predisposition sessions to hole for the upcoming month,” helium said.

Snapshot of the SpiritSwap takeover proposal. Source: Snapshot

Prior to the acquisition, Power developers stated: “We person the means and the tendency to inherent SpiritSwap. This would beryllium a nonstop payment to the PNFT holders, the POWER community, and the SpiritSwap community.”

On Aug. 9, SpiritSwap said it would upwind down operations by Sept. 1 if it could not find a squad to instrumentality implicit aft the Multichain exploit drained its full treasury. Interestingly, Power was besides exposed to the Multichain fiasco but lone suffered “small” losses, arsenic its treasury assets were not bridged to Multichain. 

After months of speculation, Multichain’s developers disclosed successful July that co-founder and CEO Zhanojung He was arrested by Chinese constabulary backmost successful May connected undisclosed charges. He allegedly held each entree to Multichain backstage keys and servers for the $1.5 cardinal protocol erstwhile helium was detained. Despite a deficiency of accusation connected his detention, funds belonging to Multichain and its users person been swapped for stablecoins arsenic good arsenic backstage coins and transferred retired of the protocol. Some victims person since alleged that the Chinese constabulary are progressive successful an elaborate embezzlement scheme involving users’ funds. 

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