BlockBeats News, November 7th, Degen's official post stated that they have decided to migrate DEGEN L3 to move away from the difficulties of the Rollup deployment platform Conduit's service. "They have held our rollup key for months, and we may need to restart a new chain."
DEGEN L3 processes over $200,000 in bridging transaction volume per day. Conduit pushed a bad upgrade without notice, resulting in a 54-hour downtime and causing $160,000 in user funds loss. Subsequently, bridging transaction volume dropped by over 75% in the following month.
After the incident, Conduit refused to take responsibility for the community's losses, rejected Degen's chain upgrade request, withheld sequencer fees, and demanded signing a new contract to avoid liability.
Since early August, the Degen team has been working to reach a solution with Conduit to migrate DEGEN L3's custody service, but it is now evident that Conduit has not been cooperative.