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.
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.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.