Terminal Finance Shuts Down After Converge Chain Launch Failure, User Funds Secured

Terminal Finance, a decentralized exchange (DEX) incubated by Ethena Labs, has officially ceased operations following the failure of the Converge blockchain to launch as scheduled. The project, which had accumulated over $280 million in pre-launch deposits, was designed as a MetaDEX liquidity hub specifically for Converge, an institutional-grade, Ethereum-compatible blockchain co-developed by Ethena Labs and Securitize.

With no confirmed timeline for Converge's mainnet deployment, the Terminal Finance team concluded that proceeding without the essential infrastructure was unsustainable. In an official announcement, they emphasized their commitment to ethical principles, stating, "Our decision to halt the project is driven by our commitment to ethical principles, ensuring we do not launch without a compatible ecosystem." This marks one of the most significant project cancellations in the DeFi sector this year.

All user funds remain fully secure and withdrawable at a 1:1 ratio, with assurances that no liquidity crash occurred due to controlled fund protection. Despite the shutdown, users holding Pendle positions linked to the project will continue to receive rewards, including Ethena Sats, sUSDe earnings, and EtherFi points. Additionally, the team plans to open-source the entire codebase, fostering future developer collaboration and community engagement.

This event underscores the critical dependencies in DeFi projects on robust infrastructure and highlights the importance of maintaining user trust through transparent shutdown processes.