Before I get into this, I have to state that I am not 100% sure about the details of the case as of right now but so far it seems that Co-founder Mat has sold quite a large portion of either his personal or the team’s LP tokens. We’re all waiting for an official statement by the team on this but I wanted to discuss the implications this.
First a question: Does “DEX is disabled…” mean that the on-chain DEX is completely shut down or that Linkpool shut down the in-house interface? Either way it’s not great that it had to happen at all but I think there’s a crucial difference. As I understand it’s actually impossible to shut down the DEX for real, on-chain, so I assume it’s just the interface? That would mean that the DEX would still be a DEX and theoretically people could build their own interface or communication channel to trade on there. But if a single party can shut down a decentralized exchange because it doesn’t want certain transactions to go through, then just make it a CEX in the first place.
I also think that this screams for decentralization for the LP token in terms of liquidity across different exchanges. I read that by filling the buy orders, the price shot down quite hard because the DEX is just not very liquid and it’s the only place for trading LP. So the ERC-20 transition can’t happen soon enough.
Would love to get the questions answered and discuss this a bit, or if that’s not the time and place to have team members comment on it, maybe you could answer it in the official statement later.