In news that has shaken the DeFi world, Andre Cronje and Anton Nell have left Fantom and the entire crypto space. Even more shocking is that no explanation has been forthcoming regarding their departure. The DeFi stalwart Andre Cronje even went a step further and deleted his Twitter account.
After completing a successful project, it is not uncommon for developers to move on to new endeavors. Leaving a network or an entire industrial vertical is rare, however. When it comes to DeFi, Andre Cronje has long been seen as a pioneer. In addition to his work on Yearn.finance, he has also contributed to developing the Fantom ecosystem, among other projects.
There will be several Cronje and Nell-related front-end services that no longer function. On April 3rd, 2022, the approximately two dozen applications and services produced by the team will shut down. The list includes Yearn.finance, Solidly, Keep3r network, Multichain, Bribe Crv Finance Chainlist, among others. Abracadabra, which is deep in the DeFi business, is also affected, as are other major initiatives. Nonetheless, new people could take over some of the projects, but the results could be unpleasant. The smart contracts for the affected projects, on the other hand, will continue to be available. However, alternate front-ends would have to be built for most of the Dapps.
Fantom’s TVL shrinking
Things look grim with Cronje and Nell out of Fantom. In the span of a week, its Total Value Locked (TVL) has fallen by more than 26%. This sudden decrease in TVL suggests that the major capital is fleeing the Fantom ecosystem. Multichain, Solidly, SpookySwap, Geist Finance, Solidex, Yearn Finance, SpiritSwap, Tomb Finance, and Market have all seen large withdrawals of their users’ cash.
With a rapidly growing TVL across DeFi protocols, Fantom was previously regarded as a major participant in the market. The Fantom-DeFi front has faced questions about who is in charge, as most of the TVL seemed to be controlled by a few insiders. However, despite Cronje’s exit, Fantom still has approximately $7 billion in TVL.
With things headed south in Fantom, it would be quite logical to look for viable and equally good alternatives.
What are the options?
Venus Protocol may be a good option for Abracadabra users who want to move their capital. A new team of executives just took over at Venus and they have interesting stuff in store. In addition to its strong liquidity and great returns, support for LUNA and UST also appears to be on the cards. Also, it has planned further features, such as multi-chain support, NFT collateralization, margin trading, bonding, uncollateralized loans, and more.
If you’ve been using Solidly, iZUMi Finance is a refreshing change of pace. The project has a better execution of veNFTs and seems to be right at par with Solidly. Furthermore, as iZUMi Finance runs on Ethereum and Polygon, it has no connection to Fantom.
Parallel Finance‘s Polkadot parachain slot makes it an appealing alternative to Yearn Finance. Additionally, the company’s founders have more than 25 years of experience in the industry. Moreover, it has the support of well-known venture capitalists like Sequoia, indicating a long-term strategy for DeFi.
Keep3r Network users might wish to take a look at HUMAN App as an option. Like the Keep3r App, it facilitates the matchmaking of skilled workforce with organizations that need their work done. In addition, hCaptcha has lately joined forces with the protocol. HUMAN also provides scalability for the verification of identities and withdrawals. Furthermore, the Polygon network’s low transaction fees and faster speeds make it even more appealing.
In place of Multichain.xyz, we have the Synapse Protocol. It provides a bridge between various chains as well as trustless AMMs across chains. As a result, there are more opportunities to generate yield and to swap assets, among other advantages. Moreover, its Layer-0 enhances cross-chain liquidity, resulting in greater capital efficiency, enshrined in wider decentralization.
In summary
Fantom’s DeFi ecosystem seems to lose traction for at least a short-term. The sudden exit of two of the most influential people from the platform will definitely have some effects. However, Fantom’s TVL is still among the largest in the market, which could help it attract more projects. Nonetheless, the broader DeFi ecosystem remains strong. The market also has plenty of alternatives for those who have doubts about Fantom’s future.