Saddle Finance, an Ethereum-based crypto trading protocol, is set to shut down operations and distribute its treasury to investors. Sunil Srivatsa, the founder of Saddle, proposed that the group liquidate its treasury into Arbitrum (ARB) tokens and airdrop the proceeds to holders of Saddle’s SDL and veSDL tokens, with veSDL holders receiving four times as much allocation. The move comes after the hack of decentralized exchange (DEX) giant Curve last month, which Srivatsa said in a blog post reminded Saddle’s team of the ever-present threat of exploitable bugs.
Saddle Finance offers a similar feature set to Curve and previously faced allegations of cloning Curve’s codebase. Srivatsa said the protocol’s developers need to step back from the project by September 30, 2023. Saddle previously raised over $10 million from venture backers and currently has around $2 million worth of user deposits according to analytics on its website. The snapshot for determining who is eligible for allocations has already happened, according to investors watching the situation.
Srivatsa did not immediately respond to a request for comment.