Decentralized autonomous organization Apollo DAO has revealed it will be closing down its vaults on Terra Classic (LUNC). The news follows shortly after a South Korean court declared Terra co-founder, Do Kwon, wanted after issuing an arrest warrant.
Supporting Terra Classic Network No Longer Makes Sense, Says Apollo DAO
According to the project’s developers, Apollo DAO has lent support to the Terra Classic network for as long as possible. But as it turns out, the support may no longer be reasonable. This is even as the DAO factors in the high cost of maintaining its Liquidity Provider (LP) vaults on Terra Classic as well as the extremely low returns from the same.
The project developers cited the new Terra proposal which seeks to tax 1.2% of every on-chain LUNC transaction as one of the major problems. While the proposal already ensures that the platform can only carry out transactions with substantial capital, token values have also plunged massively since May.
Then there is also the problem that Do Kwon currently faces. Kwon is currently wanted by South Korean authorities, for violating the country’s capital market laws. Meanwhile, the authorities are already working with Interpol to extradite him from Singapore. In short, all is not well at Terra’s end and Apollo DAO may just be making a run for it.
It might be worth mentioning, however, that Apollo DAO is yet to make a final decision regarding Terra. The DAO said it is open to the idea of relaunching its vaults on Terra Classic. However, that will only be after careful consideration of all factors. It wrote in part:
“We will continue to assess the viability of relaunching our vaults on Terra Classic.”
For the foreseeable future, Apollo DAO says it will be focusing on liquid staking. It also plans to develop the Apollo Safe on a wide range of Cosmos chains. Since launching last September, the total value locked (TVL) of ApolloDAO has plunged from its peak of around $200 million to less than $125,000.