Solana DeFi Reaches All-Time High Despite FTX Hack, OpenBook Proves Decentralization in Action

Bankman-fried and his crypto exchange, ftx, were at the center of an event that threatened to unravel the decentralized finance system on the solana blockchain. serum was founded by a consortium of entities, including the solana foundation, ftx, and trading desk alameda research, but after an apparent hack on ftx, defi projects on solana rushed to sever ties with serum, leaving the solana defi ecosystem in a state of uncertainty. openbook has since achieved a total value locked of $2.7 million, and serves as a testament to the potential of decentralization.

Event took place in november of 2020, with the solana defi ecosystem reaching an all-time high of $568 million on november 9th, the same day a large amount of sol tokens held by validators were set to unlock. openbook has integrated with jupiter, raydium, and prism since its launch, and has achieved $1.8 million in volume over the past day. solana defi’s tvl is spread across multiple applications, with no single one capturing more than 14% of the ecosystem’s total value locked.

Hack on ftx raised concerns about the potential of malicious code being deployed, as the centralized exchange had unilateral access to the key. this caused defi volume on solana to drop significantly in the past month. ben sparango, head of business development at solana labs, noted that the foundation was keen on funding grants for openbook development, with an upcoming solana foundation hackathon in january focusing on defi. however, jimthereaper, a pseudonymous developer, argued that grants alone are not enough for a sustainable defi project. openbook has managed to succeed despite the setback, and serves as an example of the potential of decentralization.

By Evey Lovelace

You May Also Like