Decentralized finance (DeFi) platform Friktion is shutting down its user interface and urging clients to withdraw their assets from the protocol, according to a Jan. 26 statement.
The project website will no longer provide the same services, operating in withdrawal-only mode for all Volts and making deposits unavailable. Friktion’s Volts are structured products for DeFi investments that allow investors to earn a share of the income from investment funds, according to the company’s page.
Friktion has made the difficult decision to sunset its user platform, a process beginning with moving all Volts into Withdrawal-Only mode on Friktion’s User Interface https://t.co/zrRbHgr6FV starting 25 Jan 2023.
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— Friktionâš¡ (@friktion_labs) January 27, 2023
Friktion has made the difficult decision to shut down its user platform, a process that will begin with all Volts transitioning to withdrawal-only mode in the Friktion UI starting January 25, 2023.
The underlying protocol, however, will still be accessible on-chain. According to the company, the “difficult market for DeFi growth in recent months” It has been the engine of the decision of the interested parties:
“This decision was not taken lightly, as Friktion has successfully navigated a number of challenges in the past, including Luna, FTX, and network outages. The company remains a strong believer in the future of DeFi at Solana and will continue to support the ecosystem whenever I can.”
The Friktion app reached nearly 20,000 user wallets, exceeding $3 billion in trade volume and achieving over $160 million in total value locked (TVL) in the first half of 2022 before being hit by the bear market. In November 2022, the firm even launched an undercollateralized loan targeting demand for DeFi from institutional investors.
The decision to close your user interface It comes nearly a year after the company announced it had raised $5.5 million in a funding round. Investors in the round included Jump Crypto, DeFiance Capital, Delphi Ventures, Solana Ventures, and Tribe Capital, among others.
Among the names on the platform’s board of directors were Alameda Research, the sister company of FTX that played a crucial role in the exchange’s collapse in November 2022. Other members included Genesis Trading, LedgerPrime, CMS Holdings, and Orthogonal Trading.
Friktion did not immediately respond to Cointelegraph’s requests for comment.
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