DeFi Exchange ‘Mercurial’ Relaunches as ‘Meteora’, Distancing Itself From FTX

DeFi Exchange ‘Mercurial’ Relaunches as ‘Meteora’, Distancing Itself From FTX (1)

Decentralised stablecoin exchange Mercurial has announced aggressive restructuring plans. The Solana-based platform funded by collapsed crypto exchange FTX will be rebranded as ‘Meteora’ and is set to issue a new native token. 

Mercurial, a decentralised finance (DeFi) trading platform on the Solana (SOL) ecosystem has announced aggressive plans to relaunch itself from the ravaging effects of the collapse of crypto exchange FTX in November.

The stablecoin exchange now rebranded as “Meteora”, is also abandoning MER token, the platform’s native asset that has fallen by 46% since FTX’s bankruptcy. The restructuring plans will have huge ramifications for MER holders, as it is now being replaced by a new Meteora token that will have a maximum supply of 100 million, one tenth the mint of the original asset. According to Mercurial’s plans, most MER owners will receive the new token in proportions equivalent to their current portfolio. 

However, the platform’s stakeholders including seed investors, private investors and team members, who controlled 45% of all MER tokens under the original plan, will take a major hit as they are slated to get a 50% haircut on unvested MERs. Ben Chow, co-founder of sister protocol Jupiter Finance, says that the company’s reorganisation will help increase token holders’ influence on the new project. Meteora, which has been under work since September, was originally meant to serve as Mercurial’s dynamic automated market maker (AMM), a next generation yield-generating DeFi product.  

“Originally it was just going to be a product under Mercurial with the MER token but because of what happened with FTX that became a catalyst for us saying, “Hey we really need a new token, not just a new product,” added Chow. 

According to the founder, Meteora’s AMM vaults get extra yield on depositors’ assets by loaning excess capital to lending protocols. In addition to trading fees, the market marker also generates lending yield. However, Chow acknowledged the risk of customers’ assets getting lost or stolen in an unfortunate occurrence, but said that high-risk tolerances are part of DeFi. Meteora will rebalance loans automatically, and enable other DeFi protocols to build on top of its architecture to get more yield and future upside. 

DeFi Exchange ‘Mercurial’ Relaunches as ‘Meteora’, Distancing Itself From FTX

Meteora is the latest in the host of DeFi platforms that have had to re-emerge from the implosion of Sam Bankman-Fried’s crypto empire. FTX and its sister firm, crypto hedge fund and market maker Alameda Research, widely controlled Solana’s DeFi ecosystem. Bankman-Fried was also a seed investor in the Ethereum rival. His companies were primary venture capitalists and market makers for many platforms on the Solana network including Mercurial, which issued MER tokens in a sale hosted by FTX. 

On November 11, soon after FTX declared bankruptcy, a hacker stole $372 million worth of assets from the exchange. In the process, they also took away $800,000 worth of MER, which propelled the team to revamp the entire protocol. 

Mercurial will release a snapshot determining new token holdings in the coming days. In January, the stablecoin exchange will release its new token, AMM vault and a community-run decentralised autonomous organisation (DAO) that will also manage social media channels. Meteora has blacklisted the hacker’s address from the token airdrop, and will make a decision regarding the status of the missing assets early next year. 

Last week, the DAO of Solana-based decentralised token bridging platform Ren Protocol, voted in favour of issuing 180 million REN tokens ($10.8 million) to fund the development of a new protocol. The DeFi platform acquired by Alameda Research in February was backed by the hedge fund until last month. 

At the time of writing, SOL is trading at $10 – down by 10.7% in the last 24-hours. 

Also Read U.S Government is Investigating $372 Million Hack of FTX

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