Ethfinex Closes on October 12, Evolves to DeversiFi
Decentralized exchanges have come under pressure, despite claims to unlimited trading.
Ethfinex, the decentralized exchange for Ethereum-based tokens, is closing this October 12, and merging its volumes with Bitfinex. The announcement arrives as Bitfinex is facing a joint class-action lawsuit against its parent company iFinex, and Tether, Inc.
The team explained that Ethfinex was a temporary tool to explore the potential for decentralized trading, while adding functionalities. The goal with the next type of market is to offer a smoother and faster user experience, as well as additional trading features.
The Ethfinex activity will switch to DeversiFi, a newly created fast decentralized market. Currently, Ethfinex is in the process of token transfer to the DeversiFi market, offering a faster experience and planning to launch margin trading and futures markets.
If the October 12 deadline is missed to manually move the assets to DeversiFi, Ethfinex users will see the same balances by logging onto Bitfinex.
“With the evolution of Ethfinex Trustless to DeversiFi and the fast-approaching Margin, Lending and new Fee features - giving DeversiFi a competitive edge against other exchanges - now is the time to close down ethfinex.com,” the team explained.
Ethfinex carried a volume of about $1.81 million in 24 hours, potentially competing with Binance DEX in terms of activity. The exchange carried 256 pairs, which will now switch to the new market. But the Ethfinex Trustless app shows zero activity in the past days, crashing to zero after a June peak. The trustless exchange used the 0x protocol for its smart contracts, but despite the promotion, the platform seems to be rather inactive.
Now, DeversiFi will have to show if it can generate volumes and survive the shift in mood on the altcoin market.
The switch arrives at a time when ETH tokens are becoming more important for decentralized finance and lending. ETH is highly active, and keeps up with a price of $183.11, recovering from recent lows under $170. Nearly $550 million in ETH flowed into decentralized finance, making the asset instrumental to the most recent trend in the crypto space.