Terminal Finance said on X(Twitter) it won’t be launching its long-planned Terminal protocol, citing a project that is no longer viable after the Converge chain, the ecosystem Terminal was built to be the liquidity hub for, failed to go live as expected.
Statement from the team
The team said it had completed the full codebase and was prepared for a Q1 2025 launch, but with Converge’s mainnet still dormant, the protocol would lack the ecosystem it needed to operate.
The decision comes after Terminal accrued significant pre-launch interest: during the buildout, the protocol had attracted large deposits and integrations with partners such as Pendle and EtherFi, and prior reporting put pre-launch deposits in the hundreds of millions of dollars.
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Terminal’s team said it explored multiple pivots but concluded none offered a credible long-term path forward, citing “limited support, low asset-onboarding potential” and other material blockers.
Terminal’s announcement emphasised capital protection for the users: “All principal is preserved, and all user deposits remain backed 1:1,” the team wrote, and users can withdraw deposits at par. Holders of existing Pendle positions will also receive the corresponding Ethena Sats, sUSDe yield and etherfi points tied to those positions, the post added.
Why this decision?
The company framed the decision as one of principle. Launching “just to launch a project goes against our principles,” the post said, adding that preserving integrity and the safety of user funds guided the tough call.
Terminal also pledged to open-source the fully audited protocol codebase so the community can inspect and reuse the work.
Terminal described its design as a MetaDEX built to trade yield-bearing stablecoins and to address yield-derived impermanent loss by “reinject[ing] yield to bribe markets,” a mechanism the team argued would improve economic dynamics for liquidity providers and issuers.
With Converge’s delay, however, the envisioned ecosystem and onboarding opportunities that made the model attractive were not available.
Whether Converge provides a launch timetable or alternative plans, how partners (including Pendle and EtherFi) respond to the unwinding, and whether the Terminal codebase is forked or repurposed by other projects, is still to be seen.