• SpiritSwap, a Decentralized Exchange (DEX) operating on the Fantom [FTM] ecosystem, has announced that it will cease to function from 1 September.
• This decision was due to its inability to cope with the numerous challenges it has faced including a multichain bridge attack that cost $126 million and left the treasury drained.
• The unfortunate incident led to a decrease in Total Value Locked (TVL) of Fantom, indicating distrust for the protocol.
SpiritSwap Forced To Shut Down
Fantom DEX SpiritSwap has announced that it will shut down in September after a multichain bridge attack made operations difficult. Once recognized as an integral part of Fantom, SpiritSwap decided to stop running and new addresses overlooked joining the Fanton network as trust for the project fell.
Reason For Shutdown
SpiritSwap explained that their decision was necessary due to its inability to cope with the numerous challenges it has faced. This included a multichain bridge attack which cost $126 million and left their treasury drained. Additionally, this unfortunate incident led to a decrease in Total Value Locked (TVL) of Fantom, indicating distrust for the protocol.
Rise Of SpiritSwap
In 2021, SpiritSwap emerged as a popular DEX on the Fantom Opera Network during the bull market and allowed traders easy token swapping on the chain which caused an increase in adoption and made it an integral part of Fantom’s success.
Impact On TVL
The multichain hack left its mark on TVL metrics measuring unique smart contract deposits flowing into protocols – increased TVL indicates trustworthiness but decreased TVL implies exit of liquidity and mistrust for said protocol. Unfortunately for Fantom, this was exactly what happened after this incident leaving them no choice but to shut down their DEX platform.
Due to various difficulties they encountered including financial issues related to security breach costing them $126 million leaving them with no choice but too shut down Spirit Swap exchange platform from 1st September 2023