SpiritSwap, a decentralized exchange (DEX) operating on the Fantom blockchain, has escaped closure, which was previously looming due to its trapped treasury funds on the troubled cross-chain protocol Multichain. In a community vote on August 16, SpiritSwap p users overwhelmingly approved a proposal to transfer the project to Power, another platform on the Fantom network known for its non-fungible tokens (NFTs) and DEX functionalities. As part of the transition, Power will deposit $200,000 USDC into SpiritSwap's vault.
The decision to save SpiritSwap came after an announcement that it would shut down by September 1 if a new team couldn't take over. The community was concerned about the loss of all its funds due to a multi-chain bug. Nzaru, the lead manager of SpiritSwap, expressed gratitude for the Power team's willingness to deposit a significant amount of funds into SpiritSwap's treasury. As a result of this agreement, Nzaru will be leaving his role at the DEX, and the transition process is set to be finalize d soon.
Interestingly, both SpiritSwap and Power had been affected by the troubles associated with Multichain. However, Power managed to minimize its losses as it did not bridge its financial assets to the problematic Multichain. The Multichain saga unfolded when it was revealed in July that its CEO , Zhanojung He, had been arrested by Chinese authorities in May, leaving the project in turmoil with approximately $1.5 billion worth of private keys and server access in his possession. This incident led to significant financial losses and prompted speculations of potential poll ice involvement in misappropriate user funds.
