Summary:
- Shutdown Announcement: ZKX Protocol is ceasing operations due to financial difficulties.
- User Withdrawal: Users are encouraged to withdraw their funds by the end of August.
- Operational Challenges: Minimal user engagement, low trading volumes, and insufficient revenue cited as reasons for the closure.
ZKX Protocol, a decentralized finance (DeFi) platform built on Starknet, announced on July 30 that it will cease operations due to financial challenges. In a social media post, ZKX founder Eduard explained that the decision was driven by minimal user engagement, low trading volumes, and an inability to generate sufficient revenue to sustain operational costs.
Picture Source: Eduard X
Eduard emphasized that all markets will be delisted, and funds will be returned to users. He urged users to withdraw their funds by the end of August, with the sunset period extending until then. The protocol faced difficulties, including a decline in token value and a broader exhaustion of the DeFi market.
Despite the hurdles, Eduard expressed gratitude to the community members who supported the project during this challenging time. The closure of ZKX Protocol highlights the ongoing struggles within the DeFi sector as it navigates market volatility and evolving user expectations.
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