Solana Stablecoin UXD Protocol, Announces Cease Operations
2024-08-20
Bittime - UXD ceased operations due to lack of liquidity and market challenges, with the refund process via DAO voting. Check it out in this article!
Reason for Termination of Operations
The UXD team said that the closure was due to a lack of liquidity and the inability of their stablecoin model to meet product market requirements.
This suggests that although their stablecoin project was possible, problems maintaining liquidity and adapting to market demand were the cause of this closure.
Refund and Closing Process
User refunds will be made through the DAO's voting mechanism, and is expected to take up to two years. Additionally, as part of this closing action, UXD will also destroy $7.5 million worth of UXP tokens.
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Mango Markets Incident
The attack on the Mango Markets platform in October 2022 resulted in UXD losing $19.9 million. Although they managed to recover the funds, the incident seems to be one of the problems that disrupted their operations.
Conclusion
UXD's struggle to provide a stable currency spread across the Solana ecosystem ended with their decision to cease operations.
UXD ensures their commitment to the community and users with refunds and token destruction.
This closure process will be a major focus for the UXD team in the next few years, ensuring that all users get their funds back in full.
Therefore, UXD's closure shows that algorithmic stablecoin projects face major problems in maintaining stability and liquidity in an ever-evolving market.
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