Saddle Finance Dissolves and Redistributes Funds to Investors

On August 8, 2023, Sunil Srivatsa, the founder of Saddle Finance, announced that the Ethereum-based AMM protocol will cease operations and begin distributing tokens back to investors. This decision aims to safeguard investor assets following the shocking hack of Curve Finance.

Liquidation and Token Distribution Process

Saddle Finance will liquidate its treasury into Arbitrum (ARB) tokens and distribute the proceeds to holders of Saddle's tokens, SDL and veSDL. Specifically:

• The current supply of SDL is 500 million tokens.
• The supply of veSDL is 43 million tokens.

The proposed allocation ratio is as follows:

• 1 SDL = 0.0026 USD ARB
• 1 veSDL = 0.01 USD ARB

Reason for Dissolution

The decision to dissolve follows the Curve Finance hack, which raised significant concerns about security threats and potential exploits in the DeFi space. Earlier, in late April, Saddle Finance experienced a security breach that resulted in a $10 million loss. However, the protocol managed to recover $3.8 million subsequently.

History and Current Status

Saddle Finance, an AMM project on Ethereum, had faced allegations of copying Curve Finance's source code. In 2021, Saddle raised $10 million from investment funds. According to its website, the protocol currently holds $2 million in user deposits.

This move is crucial to protect investor interests and ensure fair redistribution of assets following security incidents in the DeFi ecosystem.