Project Shutdown Follows Months of Uncertainty
Terminal Finance has canceled its long-planned DEX launch after the Converge blockchain failed to go live as expected. The team confirmed the decision after months of delays around the chain that was central to its design. The move shocked many users because Terminal had attracted more than $280 million in pre-launch deposits.
Terminal built its entire protocol to operate as the liquidity center for the Converge ecosystem. The team completed development and prepared for an early-2025 rollout. However, the Converge chain missed its planned arrival window. The delay also created uncertainty around the broader roadmap.
Terminal stated that the DEX was shaped specifically for Converge and depended on that chain’s infrastructure. The team said the blockchain had no confirmed launch plans. This forced Terminal to reconsider its strategy as the delays continued. The team said they spent months evaluating alternatives.
Terminal explored several pivots across multiple ecosystems. However, the team said each option created major long-term concerns. They cited issues with asset onboarding and weak support among potential partners. They also noted limited confidence in the sustainability of those paths.
Terminal leaders said they did not want to launch a project without a strong foundation. They stated that rushing the DEX would contradict their principles. They also said maintaining integrity mattered more than meeting deadlines. The decision followed long internal discussions.
The team apologized to early supporters and community members. They acknowledged the disappointment across the ecosystem. The decision affected internal contributors and partners. Still, they insisted the move was the most responsible path.
Depositors Can Withdraw Funds in Full
Terminal confirmed that all user funds remain fully intact. The project said every deposit is backed 1:1 and available for immediate withdrawal. This includes all deposits stored in Terminal’s vaults before launch preparations. The team stressed that no participant will lose their principal.
Terminal’s pre-launch vaults previously reached full capacity. Deposits included more than $225 million USDe, 10,000 Ether, and 100 Bitcoin. Data from DefiLlama showed more than 10,000 wallets contributed to the vault.
Terminal also addressed users who held Pendle positions through the protocol. They said those users will receive their full Ethena Sats rewards. They will also continue earning the associated sUSDe yield. Additionally, they will retain any eligible EtherFi points.
Terminal said these protections reflect a commitment to users even as the project winds down. The team said preserving deposits was its top priority. They also said transparency formed a core part of the shutdown process. Support channels remain open for further questions.
Open-Sourced Code Leaves Door Open for Future Builders
Terminal plans to open-source its fully audited protocol. The team said releasing the code will allow others to study or build on the technology. They noted that the design focused on a MetaDEX structure. This structure attempted to reduce yield-based impermanent loss.
The MetaDEX model aimed to reinject yield into bribe markets. Terminal said this feature improved economic efficiency by default. The idea attracted early interest before the project’s cancellation. Developers may still explore the system in future experiments.
Converge’s stalled launch remains an unresolved issue for Ethena Labs and its partners. The chain was expected to serve as a settlement layer merging traditional finance with DeFi. It centered on assets linked to the USDe and USDtb stablecoins. However, no updated timeline exists today. The shutdown now raises questions about other projects tied to Converge’s roadmap.