Solana DeFi: Ramifications Post-FTX Collapse

Key Insights

• Solana TVL is down 30% in SOL terms in the wake of the FTX Group (FTX +Alameda)’s collapse, with SOL itself down 63% against USD.
• A community fork of Serum had to be deployed, as FTX/Alameda held the upgrade keys to the original Serum contracts. The fork has since garnered over $50 million in order book depth on the critical SOL/USDC pair.
• Sollet-wrapped tokens “backed” by FTX saw significant price decreases and now trade at steep discounts to the value of their intended collateral backing.
• The so-called “Solend whale” was finally liquidated, leaving the protocol with ~$6.5 million in bad debt. The DAO passed a vote to use the Solend treasury to make depositors whole.

FTX’s implosion and the ensuing downward price pressure on SOL have caused significant ripples across the Solana DeFi ecosystem.