Solana developers work to remove FTX controls on Serum DeX


Solana developers are looking to fork liquidity hub Serum after FTX’s settlement led to hackers withdrawing more than $400 million from a bankrupt exchange.

Given that FTX developed Serum, many developers believe that the FTX hack could affect the decentralized network.

Developers Rush To Fork

Anatoly Yakovenko, the founder of Solana, Told Developers are forking the Serum code today and will be relaunching the protocol free of FTX involvement.

This is necessary because in FTX someone has a private key that can control the original code, and the key may have been compromised.

Yakovenko clarified concerns expressed by Adam Cochrane that Jump Trading is trying to fork the serum even though it may have liquidity issues. he said:

“It has nothing to do with SRM or JUMP. A lot of protocols rely on Serum markets for liquidity and liquidation.”

The developer leading the forking, Mango Max, has also provided more updates on what led to the decision to fork. According to him, “The Serum Program Update Key was not controlled by its own organization, but by a private key attached to FTX. At this time no one can confirm who controls this key.” And so Serum has the power to update programs, possibly deploying malicious code.”

The importance of the serum protocol for solana cannot be underestimated. Several projects, including Magic Eden, Phantom, Mango Markets and Jupiter, have stopped using Serum as a liquidity source, citing security concerns.

Serum SRM Value Crash 70%

Meanwhile, the events of the past week have sent the value of SRM crashing. It has lost more than 70% of its value in the last week alone.

It lost over 34% of its value today following news that it may have been affected by the FTX hack. Its SRM cryptocurrency is currently trading at $0.2617.

Serum SRM 24-Hour Price Chart Data from CoinMarketCap
SRM 24-Hour Price Display (Source: CoinMarketCap)

Reports have revealed that SRM coins have assets worth $2.2 billion in FTX books.

DEFILAMA data showed that even serum TVL fell to barely $1 million. This is a significant drop in the year-over-year metrics. Its TVL stood at $1.7 billion by this time last year.

It has been slowly decreasing since the beginning of the year, reaching around $108 million as of November 7. The recent FTX crash has led to a more drastic drop for many tokens associated with the crypto exchange.

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