Robert Steinadler, 2 months ago

Solana is showing its resilience – The community is taking over

Solana has suffered from the downfall of FTX and Alameda. Both companies were heavily invested in the ecosystem and many analysts believed that this could be the end of Solana. While it is true that the project as a whole profited from the investments that were made in the past it isn’t depended on cash flow from these companies.

How is Solana doing, and what is its DeFi community achieving while the crypto winter is still freezing?

Serum had to be abandoned

Serum was one particular project that was pushed by SBF and his companies. A decentralized protocol that is going to provide liquidity as well as an exchange that has a decentralized order book. The most crucial point about Serum is that it became some sort of backbone for many other financial dApps on Solana. With the failing support from SBF’s companies it became unclear how Serum will develop in the future and many projects starting to go their own way.

Some protocols like Raydium or Jupiter did so a month ago very shortly after the crisis evolved and decided to no longer share liquidity with Serum.

Instead of becoming a complete failure, Serum has been taken over and forked by its community and is now called OpenBook. With a new team of developers at the helm, the future of the protocol seems to be secured and trust has been restored with more protocols “returning” and using its features.

OpenBook is keeping up the good fight

The problem that OpenBook is facing is the question of how to replace SRM. The token fueled the Serum ecosystem and about 97% of the supply is held by FTX and will most likely be sold during the bankruptcy proceedings. Aside from providing a 50% rebate on trading fees SRM was also the governance token that was meant to hand over the control to the community one fine day.

Some community members believe that it is inevitable that OpenBook starts its own token. Others seem to support the idea that SOL could become the DEX token. Both ideas have its merits, and it will be interesting to watch how this situation plays out. In any case, there is no single party driving the decision but rather the community that is flocking around the protocols that keep DeFi on Solana alive.

The TVL on Solana fell by – 75% within the last 30 days. It remains to be seen if the Solana community stands together and manages the crisis in the months to come. The whole DeFi sector has suffered during this bear market with the BNB Chain as the only exception that shows strong signs of a recovery.

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