This crypto money platform, the Solana DeFi credit institution, closed its application, citing the liquidity crunch. cryptocoin.com We have compiled detailed information about the closed platform for you.
Cryptocurrency platform closed its application
The team said on Feb. 1 that Solana-based DeFi lending protocol Everlend Finance has shut down its app platform despite having enough runway to continue operating in the current business environment.
The Everlend team has put the platform into withdrawal only mode. Users have been asked to remove their assets. The announcement stated that the app will continue to work until all withdrawals are completed. The team also outlined their plans to meet all raised and unused funds over the next two weeks.
Everlend attributed the decision to close to the liquidity crunch faced by participants giving DeFi loans. The team stated that it would be a gamble to continue working in these conditions.
Wednesday’s shutdown notification relates only to the Everland app’s user interface. The Everlend team says it will open source the codebase so others can continue to build solutions using the technology stack.
Solana lending wind wanes
Everlend has become the latest Solana-based DeFi lender to shut down recently. Friktion, another Solana-based DeFi returns platform, shut down its front-end implementation in January, citing the numerous challenges facing the crypto ecosystem as a whole.
According to DeFiLlama, Everlend was controlling almost $400,000 in total value locked in at the height of its power. That figure dropped significantly in November amid the consequences of FTX’s collapse when funds left the protocols in the Solana ecosystem.
Founded in 2021, Everlend had previously raised funds from backers such as Serum, Everstake Capital and GSR. The Ukrainian lending platform had plans to switch to a community-controlled DAO in the first quarter of 2023.
Solana-based DeFi project
Solana DeFi yield platform Friktion is shutting down its front-end website after customers are asked to withdraw their holdings, the company announced on Friday. This means that the front-end website will no longer be able to provide the same services, but the underlying protocol will remain accessible on the blockchain.
The platform took the first step in this process and switched all volts to pull-only mode. Volt is Friktion’s configured product for DeFi investments. Volt holders receive a share of the revenue from investment pools. The platform also no longer accepts deposits from users.
The Solana DeFi platform stated that the decision to shut down was difficult but faced numerous challenges. Friktion has listed several Solana outages as some of the challenges faced during its operation, along with FTX and Terra ecosystem crashes.
According to DeFiLlama, Friktion’s unlocked total value peaked at $164 million in April last year. This value fell by about 97% to $5 million. The platform traded $3 billion and had over 20,000 user wallets at the time of its operation. Friktion even started offering low-collateralized loans to corporate clients in November last year.
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