DEGEN L3 Migration Challenges: Conduit Standoff and Financial Losses
DEGEN is facing obstacles in migrating DEGEN L3 to a new service provider due to issues with Conduit, which have resulted in financial losses and operational setbacks. The relationship between DEGEN and Conduit has deteriorated, leading DEGEN to consider drastic measures to protect its users.
The problems began in August when DEGEN decided to move away from Conduit after experiencing operational issues that eroded user trust. A problematic upgrade by Conduit in May caused a 54-hour chain downtime, resulting in a loss of $160,000 in user funds and a significant drop in daily bridge volume. Despite these issues, Conduit did not take responsibility for the losses or provide adequate support.
Conduit’s refusal to release essential rollup keys has been a major hurdle in completing the migration process. The network cannot activate its new service provider without these keys, and Conduit has demanded a new contract before releasing them. This negotiation has resulted in delays and setbacks for DEGEN.
Moreover, Conduit has confiscated sequencer fees and deleted block explorer data, further complicating the migration process for DEGEN. The community has shown support for DEGEN’s team, with many users expressing frustration over Conduit’s actions. DEGEN leaders are considering launching a new chain and compensating holders if Conduit continues to impede the migration.
While DEGEN prefers to avoid legal action, they are prepared to pursue all options to protect their ecosystem if Conduit does not cooperate. Transparency is crucial for DEGEN, and they hope that Conduit will comply with the necessary steps for migration. If not, this situation serves as a warning to other decentralized communities about the importance of reliable infrastructure.
DEGEN is committed to resolving the migration challenges and ensuring the security of its users’ funds. The team is exploring all avenues to overcome the obstacles posed by Conduit and move forward with the migration process smoothly. Stay tuned for updates on DEGEN’s migration efforts and the resolution of the standoff with Conduit.