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What is OpenBook?
Solana-based AMM Raydium announced that it has integrated with decentralized exchange Open Book to share liquidity to it.
Open Book is a community-led fork of Serum V3. Raydium's hybrid AMM is already leveraging liquidity in select pools to market make on the order books. Current integrated pools include SOL/USDC, SOL/USDT, RAY/USDC, RAY/USDT and others.
What is Serum?
Serum refers to both the Serum decentralized exchange and SRM, its utility token.
As a cryptocurrency, the Serum token runs natively on the Solana blockchain, which means Serum transactions take place very quickly. The token is cross-listed as an ERC-20 token on Ethereum.
Serum is also available in a 1 million-token denomination, the MegaSerum. Users can convert SRM to MSRM and vice versa. The Serum Foundation has created a supply cap of 1,000 MSRM. Holders of MSRM tokens enjoy special privileges in Serum ecosystem governance.
SRM’s main purpose is to serve as the utility token of the Serum decentralized cryptocurrency exchange. The Serum DEX is the primary application of Serum tokens.
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Methodology
In this dashboard, we will examine the OpenBook platform (a fork of Serum) using Solana blockchain tables. We will analyze the two weeks before and after the collapse of FTX and its impact on Serum (OpenBook), biggest Solana DEX platform. Please note that OpenBook is a fork of the Serum platform that started working on November 13 and was introduced by the Serum Solana team to reduce risk and gain user trust.
Technical:
> Solana Tables: > solana.core.fact_token_prices_hourly > > solana.core.fact_staking_lp_actions > solana.core.fact_transactions > > solana.core.fact_transfers > solana.core.fact_events > solana.core.fact_swaps > > OpenBook (Serum) Contract Address: > srmqPvymJeFKQ4zGQed1GFppgkRHL9kaELCbyksJtPX > > OpenBook Launch Date: 2022-11-13 > > FTX Collapse Period: > > 2 Weeks Before FTX Collapse: October 24 to November 6 > > 2 Weeks After FTX Collapse: November 7 to November 20
Findings
In this section, we examine the number and volume of transactions and the number of users for the Serum platform (Open Book) in the period of 2 weeks before and after the collapse of FTX. The OpenBook platform was created on November 13, 2022 as a fork of Serum. Two weeks before the collapse of FTX, that is, from October 24 to November 6, 21,003,311 transactions with a transaction volume of 1.2 billion SOL were made by 32,700 users. Two weeks after the collapse of FTX, from November 7 to 20, 2022, a total of 8,476,174 transactions with a transaction volume of 543 million SOL were made by 49,764 users. In the charts, we can see that from October 24 to November 6, between 800 and 2.2 million transactions were processed on Serum with an average volume of 80 million SOL. From November 7 to 20, between 38 thousand and 1.2 million transactions with an average volume of 20 million soles were processed on Serum (OpenBook).
In the transaction volume chart on November 9, we can see the transaction volume of 220.7 million SOL. A large amount of Solana SOL, most of which was probably for swaps. After November 9, we have seen a sharp fall of Solana SOL price to the point where its price fell from $36 to $12. Let's check how the story of FTX started:
FTX and Alameda were founded by former trader Sam Bankman-Fried, 30, in 2017. Bankman-Fried was the institutional face of the cryptocurrency industry. He was a regulator-whisperer and a big donor to the Democratic Party. His meteoric rise made him one of the richest men in the world with a fortune that exceeded $21 billion, but evaporated in a few days between Nov. 8 and Nov. 11.
FTX customers and investors have no certainty today that they will be able to recover their money/cryptocurrencies.
Nov. 2:
News outlet Coindesk publishes an article raising concerns about the financial health of FTX and Alameda Research. The article claims that the assets of Alameda Research consist of FTT, the cryptocurrency issued by FTX.
The revelations cause great concern for the following reasons: FTX was using FTT as collateral on its balance sheet. This represented a significant exposure, due to the concentration risk and the volatility of FTT. This therefore raises fears about the capital reserves of Alameda and FTX.
Nov. 6:
Billionaire Changpeng Zhao, CEO of Binance, FTX's rival exchange, announces that Binance was going to sell about $530 million of FTT, in response to Coindesk's information. That triggers a run on the bank.
The rush of investors to withdraw their money and cryptocurrencies causes a liquidity crunch. About $5 billion would be withdrawn on Nov. 6 from FTX, Bankman-Fried says.
Nov. 7:
In a now deleted tweet, Bankman-Fried assures that the assets are fine.
"A competitor is trying to go after us with false rumors. FTX is fine. Assets are fine," he says on Nov. 7. " FTX has enough to cover all client holdings. We don't invest client assets (even in treasuries). We have been processing all withdrawals, and will continue to be."
Nov. 8:
Thunderclap: Bankman-Fried and Zhao announce that they have reached an agreement for the acquisition of the empire of the former by the latter. The finalization of the deal is pending due diligence.
Bitcoin is falling. The values of cryptocurrency-related companies like Robinhood and Coinbase are plunging in the stock market.
Nov. 9:
Another blow: Binance announces that it is withdrawing its acquisition offer because the situation is more serious than the company originally thought.
"As a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged US agency investigations, we have decided that we will not pursue the potential acquisition of FTX.com," Binance said. \n Zhao sums up the general sentiment in the crypto industry that day: Sad day. Tried
Panic has now set in. FTX is left to its fate. There is no longer any doubt that the unthinkable is now reality. In the evening, the venture capital firm Sequoia, a major investor in FTX, writes off its entire investment in the platform.
In a letter Sequoia states that it values the $210 million investment into FTX as $0 and considers it a total loss.
Bankman-Fried meets with investors and tells them that, without an injection of fresh money, his group will have to file for bankruptcy, reports Bloomberg News. The 30-year-old boss estimates he needs $8 billion to meet FTX's obligations. He would like to raise this money in the form of debt, equity, or a combination of the two.
The U.S. Securities and Exchange Commission (SEC) is deepening its investigation into FTX, Bloomberg News reports. The Commodity Futures Trading Commission (CFTC) is also investigating the cryptocurrency exchange.
In addition, the U.S. Department of Justice (DoJ) launches its own probe, according to the Wall Street Journal.
Nov. 10:
One of the Bahamian financial regulators announces that it will freeze FTX's assets. The company's headquarters are in the Bahamas, where Bankman-Fried also lives.
"The Securities Commission of The Bahamas (the Commission) took action to freeze assets of FTX Digital Markets and related parties. The Commission also suspended the registration and applied to the Supreme Court of The Bahamas for the appointment of a provisional liquidator of FTX Digital Markets Ltd," the Commission says in a statement.
Bankman-Fried apologizes: "I'm sorry," he writes on Twitter, thus breaking a 2-day silence. "That's the biggest thing." He added: "I f----- up, and should have done better."
Tongues are starting to loosen in the crypto sphere. Brian Armstrong, CEO of Coinbase (COIN) - Get Free Report, says he was surprised by the fury of Bankman-Fried acquisitions.
"I was surprised at how much cash that they seemed to have and Sam seemed to have to go out and perform various investments in the markets, both their ventures arm and, you know, buying 9% of Robinhood and other political organizations," Armstrong tells CNBC in an interview.
Nov. 11:
What the whole crypto sphere dreaded happens: FTX files for bankruptcy along with all its subsidiaries and all the other Bankman-Fried businesses. He is forced to resign. A new CEO is appointed to lead the restructuring of the cryptocurrency empire of the former king. John Ray, the new CEO and chief restructuring officer, was the liquidator of energy broker Enron.
"FTX Group Companies commence voluntary Chapter 11 proceedings in the United States," the firm said in a statement posted on Twitter. "Sam Bankman-Fried has resigned his role as Chief Executive Officer and will remain to assist in an orderly transition."
==We looked at what happened to FTX from November 2-11. We saw that on November 2, the first shock started with the news of CoinDesk, but it did not affect the market trend, but since November 6, when the CEO of Binance, CZ, announced that he had sold 530 million FTT tokens of his exchange, there was a big earthquake in the cryptocurrency market. Especially Solana happened, whose aftershocks are still going on until now.==
Findings
In the charts of this section, from October 24 to November 20, we can see the number and volume of transactions and the number of users based on Solana's dex on a daily basis. As we can see in the chart, the number of transactions from October 24 to November 6 is normal for the Serum platform, and on average, between 900,000 and 1.6 million transactions are processed on Serum daily. On November 7 and 8, the situation is normal and Solana has not yet been affected by the collapse of FTX, the main reason could be the uncertainty in the news. The news that the CEO of FTX announced on his Twitter and said about the protection of investors' assets. But after the removal of the tweet supporting investors by the SBF [CEO of FTX] and the announcement of bankruptcy on November 11, the market experienced the sharpest drop, as we can see in the chart, on November 11, we are facing a sharp decrease in the number and volume of transactions on Serum. From November 13, the OpenBook platform started its work, we can see that the volume of OpenBook transactions is much higher than other platforms and it has been welcomed by users. Although this platform has not yet been able to gain the trust of users in Solana SOL.
Findings
In the charts of this section, we can see the status of Stake and Unstake on the Serum platform (OpenBook) two weeks before and after the collapse of FTX.
Two weeks before the collapse of FTX, from October 24 to November 6, a total of 2,339 stake transactions with a volume of 754,560 SOL were made by 1,177 users. Two weeks before the collapse of FTX, 399 Unstake transactions with a volume of 329,021 SOL were made by 162 users. As we can see, two weeks before the collapse of FTX, the number of stake transactions was 25% higher than that of unstake. Now we examine the situation two weeks after the collapse of FTX, from November 7 to 20. Two weeks after the collapse of FTX, a total of 3372 stake transactions with a volume of 466,660 SOL have been made by 1492 users. In the same period of time, 2,361 unstake transactions with a volume of 2.5 million SOL were performed by 903 users. As we can see, the volume of unstake transactions is 450% more than that of stake, and users have wanted to immediately leave the pools of the Serum platform (OpenBook). With the sharp drop in the price of the Solana SOL Coin, many users were afraid of losing their capital, and this caused a massive withdrawal from Solana DeFi platforms.
Findings
In the charts of this section, we check the situation of stake and unstake on the Serum platform (OpenBook) two weeks before and after the collapse of FTX on a daily basis. In the two weeks prior to the collapse of FTX, between October 24th and November 6th, the number of stake transactions averaged between 145 and 250 transactions, with volumes ranging from $172,000 to $9.6 million. In the same period of time, the maximum number of unstake transactions was 41 transactions with a volume of 2.1 million dollars. In the previous sections, we explained in detail what happened to FTX from November 2 to 11.
In the chart, we can see that despite the publication of an article about the concern about the status of the FTT token in CoinDesk, it has not had such an impact on the amount of stake and unstake.
But the most important news was published on November 6. On November 6, CEO of Binance, CZ tweeted that he had sold $530 million of his exchange's FTT tokens and believed that FTX was hiding the amount of its currency reserves and that the currency reserves for FTX has not remained and has made extensive loans from users' funds without notifying its users.
This news caused a big earthquake in the cryptocurrency world. After that, SBF, CEO of FTX, announced that CZ's words are false and he is committed to protecting the assets of his users.
A day later, SBF deleted his tweet, which caused a crisis in the cryptocurrency markets, and the price of Bitcoin fell to $15,000. After the Terra crisis in May, the FTX crisis hit the users the hardest. As we can see in the unstake transaction volume chart, from November 7 to 20, many users have withdrawn their funds from Serum (OpenBook), and even the launch of OpenBook on November 13 has not affected the trust of users.
Conclusion
In this dashboard, we analyzed the status of the OpenBook platform (a fork of Serum) two weeks before and after the collapse of FTX. The OpenBook platform was launched on November 13, and its main goal was to reduce risk and gain the trust of Serum users. In this dashboard, we observed that the OpenBook project has not been able to help Serum, and since November 13, many users have gone to unstake and left OpenBook.
Some of the points we reviewed in this dashboard:
> Two weeks before the collapse of FTX, that is, from October 24 to November 6, 21,003,311 transactions with a transaction volume of 1.2 billion SOL were made by 32,700 users. > > Two weeks after the collapse of FTX, from November 7 to 20, 2022, a total of 8,476,174 transactions with a transaction volume of 543 million SOL were made by 49,764 users. > > Two weeks before the collapse of FTX, from October 24 to November 6, a total of 2,339 stake transactions with a volume of 754,560 SOL were made by 1,177 users. > > Two weeks before the collapse of FTX, 399 Unstake transactions with a volume of 329,021 SOL were made by 162 users. > > Two weeks before the collapse of FTX, the number of stake transactions was 25% higher than that of unstake. > > Two weeks after the collapse of FTX, (from November 7 to 20.) a total of 3372 stake transactions with a volume of 466,660 SOL have been made by 1492 users. > > Two weeks after the collapse of FTX, 2,361 unstake transactions with a volume of 2.5 million SOL were performed by 903 users. > > The volume of unstake transactions is 450% more than that of stake, and users have wanted to immediately leave the pools of the Serum platform (OpenBook).