terminal finance say that would do It did not launch its long-awaited decentralized exchange, Terminal, after the Converge blockchain failed to go live.
Teethank youAccording to DefiLlama, this will allow the company to raise total gross locked-in (TVL) of more than $280 million ahead of its launch later this year. The pre-deposit phase spanned three capped vaults storing 225 million USDe, 10,000 Ethernet, and 100 Bitcoin. DeFiLlama data shows that the vault has reached maximum capacity.
Terminal Finance explained in its X post that “launching a project just for the sake of launching it goes against our company's principles,” and that proceeding with a project under sub-optimal conditions compromises the integrity and sustainability of the project.
Some X users praised the company's bold move. One user said, “Please respect this part. This kind of approach is not seen very often today. Maintaining integrity is paramount. Good luck to the entire Terminal team.”
Others expressed disappointment. one user said: athena Because I made this converge Chain the core of that proposal (which I think is a great idea). ”
Convergence delays thwart Terminal’s ambitious DeFi launch
Terminal Finance is designed to serve as Converge's liquidity hub and was envisioned by Ethena Labs as a bridge between traditional and decentralized finance through the integration of transaction processing mechanisms.
Converge was built to house permissionless DeFi applications and permissioned institutional products with fast block times, a staked validator network, and profitable stablecoins like USDe and sUSDe.
The terminal's architecture hybridizes a limit order order book and automated market maker (AMM) pool to ensure liquidity and facilitate instant execution. It is also designed to allow major crypto assets to be traded in parallel with tokenized real-world assets.
Even before launch, Terminal Finance hosted over $280 million in pre-launch deposits in various vaults. This shows investor confidence, with large deposits in USDe, WETH, and WBTC and over 10,000 wallets participating in the pre-launch phase.
In the case of the DEX, the official launch was scheduled to take place in the first quarter of 2025, in parallel with the token generation incentive event. but The Converge blockchain did not launch as planned, and as a result, the protocol was left without an established ecosystem on which to build.
The team considered several possible pivots, including switching to a new chain and revising the protocol. However, all faced significant barriers, including limited support, low likelihood of capital deployment, and poor long-term prospects.
Users secured as Terminal Finance plans to exit open source
Terminal Finance informed users that all principal deposits are fully backed (1:1) and can be withdrawn at any time. Previous Pendle positions are also eligible for rewards such as Ethena Sats, sUSDe yield, and Etherfi points. The company also plans to open source its fully audited codebase, which could allow developers and community projects to reuse or adapt the Terminal's technology.
It also illustrates the risks associated with ambitious DeFi projects built on blockchain infrastructure that is not yet fully deployed.
Terminal Finance says the decision was not easy for them, but it was what was required. The company expressed its disappointment with liquidity providers, ambassadors and the broader community, but also acknowledged that honesty is key.
The team hopes that open source protocols will allow them to maintain trust within the ecosystem while paving the way for future innovation.
