ZKX Protocol to Discontinue Operations Amid Financial Struggles

Despite the team’s efforts, finding an economically viable path forward is no longer feasible.

Consequently, the decision has been made to discontinue operations. Let’s discover more about this situation from the ZKX protocol.
ZKX Protocol Faces Financial Viability Challenges

Effective immediately, all markets on the ZKX platform have been delisted, and all active positions have been closed. Users can expect a full return of their funds to their respective trading accounts. For those looking to manage their assets, the process is straightforward. This means that users can transfer funds from their trading accounts to their main self-custodial accounts.

These self-custodial ZKX accounts are wallets on the Starknet blockchain. They allow users to withdraw their assets through the Starkway bridge back to Layer 1 (L1) at their convenience. Here is the tweet of its CEO:

Source: X

The sunset period for ZKX will last until the end of August. During this time, users are strongly encouraged to withdraw their funds and claim any pending STRK rewards through the ZKX application available at app.zkx.fi. The vesting and distribution of ZKX tokens will continue beyond the sunset period, starting September 1st.

More About ZKX Protocol

The decision to discontinue the ZKX protocol has been driven by several critical factors. User engagement has been notably low, with only a small number of individuals actively mining STRK and ZKX rewards. This lack of engagement has led to a significant decline in trading volumes. This, with daily revenue, fails to cover even a fraction of the cloud server expenses. The financial shortfall has made it impossible to sustain salaries and other operational costs.

Source: X

The financial challenges have been exacerbated by high monthly payments and rebates required for market-makers. These costs have consistently outstripped revenue, and with anticipated increases in payments starting in August, the situation became untenable. Despite the market-makers best efforts to balance the budget, the protocol’s financial model proved unsustainable in the long run.

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