Lifinity to Distribute $43.4M to Token Holders as Solana’s Original Prop AMM Winds Down

Lifinity, an OG Solana DEX responsible for over $150B in trading volume, has committed to winding down operations. The decision comes following an open governance proposal, which saw near-unanimous support to sunset the application.

Lifinity’s treasury will be distributed proportionally amongst token holders, demonstrating more of the same operational integrity that made Lifinity such a respected team in the Solana Defi scene.

What do $LFNTY holders need to do to claim their share?

Lifinity Treasury to go to Token Holders

One of Solana’s oldest DeFi applications is closing its doors. On December 10, Lifinity floated a governance proposal to its community regarding the continuation of the protocol in the face of rising competition from prop AMMs. 

In a near-unanimous vote, Lifinity token holders agreed that it was in the team and community’s best interests to sunset the application. As stipulated in the proposal, Lifinity DAO’s $42M asset treasury will be consolidated into $USDC and distributed to $LFNTY token holders. Additionally, Lifinity will also share its remaining development fund, which holds $1.4M.

Taking into account the most recent estimates from community members, token holders are expecting to receive between $0.90-$1.10 based on the treasury’s book value. However, this is liable to change in line with fluctuations in the value of the treasury’s assets prior to consolidation.

Reception to Lifinity’s shutdown has been overwhelmingly positive, with many community members reflecting fondly on the protocol’s lifespan and integrity in the space.

Claimants could also be in for further $USDC distributions within a year. According to the proposal, any unclaimed $USDC remaining in the treasury one year after claims go live will be airdropped pro-rata to wallets that claimed their initial allocation.

Holders of $LFNTY and $veLFNTY are encouraged to convert their tokens to $xLNFTY ahead of the redemption. The $xLFNTY to $USDC claim is expected to go live in around 9 days, pending a successful Sec3 security audit.

Prop AMM Pioneers Process Over $149B in Trading Volume

Long before modern prop AMMs like HumidiFi and SolFi were dominating onchain DEX volumes, Lifinity was serving Solana DeFi some of its most capital-efficient spreads. 

According to Blockworks data, Lifinity captured as much as 24% weekly market share at its peak, leveraging oracle-based pricing pools to give Solana-based traders optimal swaps. Since launching in February 2022, Lifinity has processed over $149B in cumulative trading volume, making it the 5th-largest DEX in Solana history.

Solana DeFi OGs have paid their respects to the prop AMM pioneers, lauding the team’s integrity and commitment to setting the foundations of the network’s market structure.

When asked if the Lifinty team had other aspirations or plans for future applications, CEO durdanwannabe declared that their focus was currently fixated on executing the ongoing shutdown and distributing $USDC to tokenholders.

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