Following the compromise of FTX, which resulted in hackers withdrawing over $400 million from the bankrupt exchange, Solana developers want to fork liquidity hub Serum.
Given that FTX created Serum, many developers believe the FTX hack may have had an impact on the decentralized network.
Anatoly Yakovenko, founder of Solana, stated that developers are forking the Serum code today and will resume the protocol without FTX involvement.
This is required because someone at FTX may have a private key that allows them to control the original code, and the key may have been compromised.
Yakovenko stated this to address Adam Cochran’s concerns that Jump Trading is attempting to fork Serum even though it may be experiencing liquidity issues.
Mango Max, the developer in charge of the fork, has also provided more information about what prompted the decision to fork. He tweeted,
I woke up this morning to the devastating news that FTX security was breached last night. It is not clear which parts have been compromised, but a general warning was issued by John Ray the new CEO. (1)
For Solana, the significance of the Serum protocol cannot be overstated. Several projects, including Magic Eden, Phantom, Mango Markets, and Jupiter, have abandoned Serum as a source of liquidity, citing security concerns.