TechFlow News, NFT perpetual contract DEX nftperp announced on Twitter that its v1 testnet has been shut down and v2 paper trading is about to launch.
Due to nftperp v1 testnet achieving a trading volume of 280,000 ETH (worth approximately $518 million), data and insights gathered over the past seven months indicate that the vAMM model used in v1 is not scalable. Additionally, certain internal team errors in liquidation logic and accounting have led to the accumulation of bad debt within nftperp. As a result, nftperp has decided to shut down the v1 testnet version.
All users' margin (WETH) will be refunded within the next hour. Therefore, no user will lose their initial collateral/margin, and they will recover all profits. For all users with unrealized profits, they will receive their margin back plus proportionally distributed profits as well as $VNFTP tokens.
