In a significant development in the decentralized finance (DeFi) space, Yeti Finance, one of the leading protocols in the Avalanche ecosystem and behind the altcoin YETI, has made the difficult decision to cease operations. This announcement comes as a result of the various challenges the protocol has faced over the past year, affecting treasury holders, token holders and the wider community. Here are the details…
Yeti Finance’s journey and challenges
Since its founding, Yeti Finance has aimed to become the leading protocol for borrowing against a diverse portfolio of assets in the Avalanche network. Despite the team’s commitment to the vision and prioritizing security, last year presented challenges, including a significant drop in Total Value Locked (TVL) and revenue. Turbulent times marked by unforeseen events and targeted attacks in the crypto industry, which consists of altcoin and Bitcoin projects, have further increased the challenges facing Yeti Finance. The team focused on maximizing protocol security with limited resources but fell short of achieving the scale necessary for long-term sustainability.
Faced with unexpected events such as the concentration of YUSD assets among a small group of users and the risky nature of introducing new features, the altcoin team decided that discontinuing the protocol was the most responsible course of action. As part of this process, approximately 90% of the existing treasury will be available for redemption by YETI holders, with the remaining funds covering the necessary liquidation costs. The buyback agreement will be available until February 10, when tokens held by the team will be unavailable and all assets will be directed to the community.
What will be the next steps?
Yeti Finance outlined a plan for users to exit the protocol, including increasing interest rates on loans outstanding for three months to encourage treasury holders to close positions. The stability pool will remain active to support disposals, but other emissions will cease. Users are reminded of the inherent risks as outlined in the altcoin protocol’s disclaimers and Terms of Service. For this reason, it is recommended that they leave immediately, recognizing that security can never be guaranteed.
In closing, the team would like to express their gratitude to everyone who has been a part of Yeti Finance’s journey. The closing marks the end of a significant chapter in the DeFi space, but the lessons learned and Yeti Finance’s legacy will continue to impact the industry for years to come. The closure is a responsible step to preserve remaining funds and reflects the team’s commitment to the safety and well-being of the community.
Altcoin price has fallen
In parallel with these developments, Yeti Finance’s altcoin project YETI experienced a decline. According to CoinMarketCap data, the coin price decreased from $ 0.006001 to $ 0.001933 in the last 24 hours. The sudden drop in price can also be seen in the chart below:
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