Diva Staking Announces Gradual Shutdown, Funds Expected to Run Out by 2024

The Ethereum liquid staking protocol Diva Staking has announced that it will gradually shut down and will not launch on the mainnet. Diva stated that the team will run out of funds by mid-2024, with three members continuing to develop for about two and a half years without income or salaries, but ultimately unable to sustain operations. Users with pre-deposited funds in the early staking vault can withdraw their funds from Enzyme. Diva mentioned that it operated on Hoodi for four months this summer without any issues, but no major participants were willing to help launch the mainnet, and the team could not afford the costs of new audits and the complexities of launching and maintaining the protocol. Diva is concerned that AI makes it easier to discover vulnerabilities, and complex systems may bypass audits and jeopardize user funds, leading them to choose not to take the risk of launching. Diva also stated that the market places more emphasis on compliance, ETFs, and regulation, putting decentralized protocols at a disadvantage.