Flash Trade plans to wind down operations unless it secures a buyer for the project, the team announced Friday. The protocol is seeking an acquisition of its technology stack, brand, and intellectual property, with any sale proceeds intended for FAF token holders on a pro rata basis.
Flash Trade is a self-funded Solana perpetuals and spot exchange that uses liquidity pools as counterparties to traders. According to its documentation, liquidity providers earn fees generated through trading activity.
Withdrawals will remain open while the sale process is underway. Flash Trade has not announced a final shutdown date and said additional details covering new positions, existing trades, and liquidity providers will be discussed during a community AMA with the founders on Aug. 10 at 16:00 UTC.
Flash Trade is already in discussions with individuals and companies about a potential acquisition. If a buyer acquires the protocol, the founders said they will commit three months of full-time work to support the transition of the technology and operations.
Under the proposed structure, proceeds from a sale would be distributed to FAF holders. Founders will not receive a share of the proceeds and that team-owned tokens would be excluded from the distribution.
The decision was attributed to declining market participation, its assessment of broader crypto market conditions and disagreements within the founding team over the future direction of leveraged crypto trading.
"It's clear to Flash Trade based on our own flows that traders want to push further out on the risk curve." -Flash.Trade
The team said it had not found a way to meet that demand while remaining comfortable with the associated risks.
After deliberation including, but not limited to, the exploration freezing its AMM in coordination with MetaDAO and returning the assets held in the pool to FAF holders. These approaches proved unworkable, leading to the current state of affairs.
