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DeFi Lender Arco Protocol, Launched on Aptos Blockchain, Goes Dark After Botched Fundraise
Network congestions and issues with claiming tokens led to widespread dismay from the Arco community.
Updated May 9, 2023, 4:00 a.m. Published Oct 31, 2022, 10:47 a.m.
Arco Protocol, a cross-chain decentralized finance (DeFi) platform on the newly launched Aptos blockchain, has gone offline following a botched fundraise.
Arco, which offer lending and staking services, intended to raise funds on Oct. 29 in an initial DEX offering (IDO), which is a form of decentralized crowdfunding. DeFi is an umbrella term for lending, trading and other financial activities carried out on a blockchain without traditional middlemen.
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However, Arco Protocol said that over 300 people deposited to the IDO at the same time, causing network congestion and an unforeseen issue with token claiming. The Aptos blockchain had a less than stellar start earlier this month.
Arco posted a Twitter poll asking the community whether the funds received should be returned, kept or if the project itself should be handed over to the community.
At press time the majority of respondents have requested a refund. Arco said that Wormhole and Celer Network had cancelled partnerships with them following the calamitous launch.
The Arco Protocol website and Discord channel are both offline.
Arco Protocol did not immediately respond to CoinDesk's request for comment.
Read more: Aptos Token Rebounds After Upstart Blockchain's Dismal Debut
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