TechFlow News — On November 8, Degen announced yesterday that it has decided to migrate its DEGEN L3 away from Conduit, the Rollup deployment platform, due to ongoing service difficulties. "They have held our rollup keys for several months—we may need to restart an entirely new chain," the announcement stated.
DEGEN L3 processes over $200,000 in bridged transaction volume daily. Conduit pushed a faulty upgrade without notice, causing a 54-hour outage and resulting in $160,000 in user fund losses. Bridged transaction volume subsequently dropped by more than 75% over the following month.
After the incident, Conduit refused to take responsibility for community losses, rejected Degen’s chain upgrade requests, withheld sequencer fees, and demanded signing a new liability waiver contract.
Since early August, the Degen team has been working to reach a resolution with Conduit to migrate DEGEN L3's hosting services, but it has now become clear that Conduit has not cooperated in good faith.
