Omnity Network Announces Exhaustion of Operating Funds, Will Gradually Cease Projects
Omnity Shuts Down Bitcoin DeFi Due to Exhausted Funds
Omnity Network announced that it has exhausted its operating funds and will gradually cease projects, with its Bitcoin DeFi products RichSwap and Satsman set to close within the next 30 days, and liquidity providers for RichSwap are urged to withdraw as soon as possible.
The team stated that they will upgrade the smart contracts and lift existing lock-up restrictions, allowing users to withdraw without limitations, but specific timelines and withdrawal guidelines have not yet been announced, only that they will be released soon. Support channels during the transition period will be maintained for 30 days.
About a month ago, the same team shut down the cross-chain bridge Omnity Hub. The bridge operated for approximately 27 months, connecting Bitcoin, Ethereum, Solana, ICP, and multiple Bitcoin Layer 2s, with the official claim of peak cross-chain asset scale nearing $1 billion. The reason for the shutdown was that bridge fee income could not cover security and operational costs, and there was an increasing risk of cross-chain bridge attacks.
RichSwap was marketed as a rune AMM based on REE, settling on Bitcoin, with no custody, no wrapping, and completing exchanges in about 5 seconds using PSBT; Satsman was used for fair launches and permanently locked liquidity on RichSwap. The infrastructure relies on the execution layer on Internet Computer, emphasizing Turing completeness and avoiding traditional cross-chain wrapping.
The announcement did not mention hackers or regulatory penalties, attributing the situation solely to cash exhaustion. Core members stated they would continue to stay in the Bitcoin ecosystem through personal and developer collaborations, without committing to inheriting products or compensating for opportunity costs during the lock-up period.
In market mechanics, liquidity in the rune pool and launchpad is sold, while on-chain assets that can be immediately exited are bought. Funds flow from LP positions to withdrawal queues; beneficiaries are those who complete exits before contract upgrades, while those under pressure are still trapped by lock-up terms or those treating permanent lock-up as a launch credibility. The driving event comes from the operational account hitting bottom, rather than theft on-chain.
Source: Public Information
ABAB AI Insight
Omnity first established a rune cross-chain bridge, then developed an AMM and launcher on Bitcoin, aiming to connect the programmability of ICP to the Bitcoin asset layer. The Hub was shut down in August due to income not covering security costs, and RichSwap and Satsman were shut down in September due to exhausted operating funds, indicating that neither bridge fees nor transaction fees could sustain a full-time security setup.
The capital path involved initially using cross-chain scale to tell a story, then using permanent lock-up to weld launchpad liquidity to its own AMM. The locked liquidity was a credibility asset while the project could still operate, but became a liability that required contract modifications to release when the team needed to exit. Funds did not flow back from the protocol treasury to a new maintenance budget, leaving only a 30-day customer service window.
Similar cases involve several Bitcoin Layer 2s and rune tools that shut down after narrative peaks due to insufficient fees to cover audits, monitoring, and bridging nodes. The industry phase has shifted from expansion to liquidation: Bitcoin financial applications that can generate sustainable fees remain, while those relying on activity heat and lock-up narratives exit.
The structural judgment indicates a reconstruction of the industry chain. The mechanism is that the Bitcoin programmable layer keeps settlement on the main chain while execution and frontend remain in external computation; once external computation cannot pay the bills, lock-up terms shift from growth tools to exit barriers; those who can modify contracts to release funds without downtime will price the redemption rights of the remaining TVL.
ABAB News · Cognitive Law
Permanently locked funds become liabilities that require contract modifications on the shutdown date.
When bridge fees cannot sustain security setups, products will close in cash order.
Settlement on the main chain and operations on the books; when the books are empty, the main chain cannot save the frontend.