In a surprising turn of events, Saddle Finance, the Ethereum-based crypto trading protocol, has announced its decision to cease operations and distribute its treasury holdings to its investors. This move follows the recent catastrophic breach that shook the foundation of the decentralized exchange (DEX) realm, explicitly affecting the industry giant Curve. Saddle Finance’s founder, Sunil Srivatsa, has proposed a meticulous plan to salvage the situation.
Srivatsa’s proposal involves liquidating the protocol’s treasury into Arbitrum (ARB) tokens and then dispersing the resulting proceeds to holders of Saddle’s SDL and veSDL tokens. However, an intriguing twist lies within the distribution plan, with veSDL token holders slated to receive a fourfold allocation compared to their counterparts. Although the exact size of Saddle Finance’s treasury remains mysterious, this strategic distribution aims to provide fair compensation to the platform’s loyal token holders.
The impetus behind this swift decision could be traced back to the monumental hack that struck Curve, a significant player in Ethereum’s decentralized finance (DeFi) landscape. This security breach was a stark reminder of the lurking vulnerability stemming from exploitable bugs within the ecosystem. Srivatsa’s blog post highlighted the team’s recognition of this persistent threat, prompting the proactive decision to wind down Saddle Finance’s operations.
Saddle Finance, often likened to Curve due to its analogous feature set, has not been devoid of controversies. Previously entangled in allegations of cloning Curve’s codebase, the protocol navigated a competitive terrain. Srivatsa’s announcement also included a timeline, with developers expected to disengage from the project by September 30, 2023. This step aims to ensure a smooth transition amidst the platform’s shutdown.
According to analytics available on its website, having garnered over $10 million from venture backers in its journey, Saddle Finance’s current financial standing includes approximately $2 million in user deposits. Notably, the snapshot to ascertain investors’ eligibility for the allocation has already transpired, as noted by vigilant market participants.
Despite the comprehensive details in Srivatsa’s proposal, the founder has yet to respond to requests for further comment on this significant development. As the crypto community observes the culmination of Saddle Finance’s operations and the subsequent distribution of its treasury, industry players and investors alike, remain poised for additional insights that could shed light on the intricate dynamics of this decision.
