Shutting Down: Armada CLMM

The Armada team has made the difficult decision to shut down all self-serve products and operations, including the Concentrated Liquidity Market Making (CLMM) product. The CLMM product has worked flawlessly and the partners performed exceptionally. Strategies even out performed competitors in many market conditions.

So why has the team made the decision to shut down? Well, it comes down to two reasons.

First, US regulations and the risks to US based contributors working on decentralized apps. It’s become more apparent that even for products not offered to US persons and where IP address blocking is implemented at the website layer, US contributors still face scrutiny. In this environment, we’ve been getting conflicting opinions on how to market the product or whether we even can. It’s pretty hard to compete or grow a product when you can’t publicly talk about it. 

This creates a recipe for disaster for a small startup that’s competing in the global FinTech space.

Second, talking to users of competing products, it became clear that most were airdrop or point farming. Often they didn’t even know that they were losing value to impermanent loss in certain CLMM strategies. And many of those users stated they didn’t care because they were farming. A lot of capital is mercenary and insight points to the idea that the organization would have to launch a token and leverage it to incentivize the product’s usage. This was something the team decided against.

The team did a great job building an incredible product, which makes it a harder decision to shut it down.