DEGEN, a decentralized finance platform, has been facing challenges in migrating to a new service provider due to disputes with its current provider, Conduit. Since August, DEGEN has been trying to move away from Conduit following operational issues that caused a loss of $160,000 in user funds and a 75% drop in daily bridge volume. Despite Conduit offering six months of free service initially, they later demanded double the renewal fees, which DEGEN found unreasonable.
One of the major obstacles in completing the migration has been Conduit’s refusal to release essential rollup keys, essential for activating the new service provider. Conduit allegedly withheld these keys unless a new contract absolving them of responsibility was signed, leading to lengthy negotiations and delays. DEGEN also claimed that Conduit confiscated sequencer fees and deleted essential block explorer data, further complicating the situation.
DEGEN’s community has shown support for the team, with many users expressing frustration with Conduit’s actions. DEGEN leaders, Jacek and Colton, have stated that they are prepared to launch a new chain and compensate holders if Conduit continues to block the migration. While the team hopes to avoid legal action, they are willing to pursue all avenues to protect their ecosystem and ensure transparency for their community.
DEGEN has emphasized the importance of transparency in dealing with infrastructure issues and hopes that Conduit will comply with the necessary steps for migration. If Conduit refuses to cooperate, DEGEN aims to send a message to other decentralized communities about the challenges they may face with service providers. The team remains committed to finding a resolution to the ongoing standoff and will take necessary actions to protect their platform and users.
The prolonged standoff between DEGEN and Conduit has raised concerns about the impact on users and the platform’s operations. DEGEN has highlighted the need for a solution to the migration issue without incurring additional costs. The team’s efforts to transition to a new service provider and address the operational issues have been hindered by Conduit’s refusal to release essential keys and cooperate in the process.
DEGEN’s determination to protect its ecosystem and uphold transparency has resonated with its community, who have voiced support for the team in the face of challenges with Conduit. The team’s commitment to exploring all options, including legal action if necessary, demonstrates their resolve to resolve the migration dispute and ensure the platform’s sustainability. Ultimately, DEGEN hopes to reach a resolution with Conduit that benefits its users and maintains the integrity of its decentralized finance platform.
