Saddle Finance Takes Unprecedented Step

Saddle Finance, an Ethereum-based crypto trading protocol, has announced to cease its operations and distribute its treasury to investors.

The founder of Saddle Finance, Sunil Srivatsa, proposed a plan to liquidate the protocol's treasury into Arbitrum (ARB) tokens. The proceeds from this liquidation will then be airdropped to holders of Saddle’s SDL and veSDL tokens. 

While the specifics of the size of Saddle’s treasury remain unclear, veSDL holders will receive four times the allocation compared to SDL holders.

This decision follows the monumental hack of Curve Finance, a leading decentralized exchange (DEX). The hack sent ripples through the Ethereum-based DeFi ecosystem, highlighting the constant threat posed by exploitable vulnerabilities.

Earlier, Curve Finance had accused Saddle of copying its algorithm, although Saddle claimed that using Vyper instead of Solidity makes the two platforms different.

Saddle Finance itself suffered a substantial hack in April of the previous year, resulting in a loss of $10 million in funds. Later, BlockSec security experts recovered $3.8 million from the hack.