The decentralized finance (DeFi) protocol Everlend Finance shuts down its operations and urges its clients to withdraw funds from the platform.
The company advertisement the decision on Twitter on February 1, stating that, despite having “enough run” to continue trading, it would be a risky bet in current market conditions. Specifically, the Everland team noted:
“Unfortunately, rn’s liquidity is simply not there and this is not just about Solana and the B/L market (which Everlend is 100% dependent on) continues to shrink. Under these conditions, going forward is a gamble. And while we had enough clue, we decided to stop now.”
Everlend also noted that deposits from the underlying protocols are now in vaults, and the app will be in withdrawal-only mode until the funds are cleared. “We suggest our users withdraw their funds as soon as possible.”
The team announced that all unused funds raised, along with payments to third-party contractors, will be “covered” over the next two weeks, indicating that relevant parties will make up their minds.. The protocol will also open up its codebase, allowing others to continue building solutions from it.
We are deeply saddened to announce that as of today our team has decided to close down https://t.co/UiTuuSdyrB and won’t continue its development
—Everlend (@EverlendFinance) February 1, 2023
We are deeply saddened to announce that as of today our team has decided to close and will not continue its development.
Founded in 2021, Everlend’s roadmap for the coming months included the launch of its governance platform and money market. Investors in the protocol included GSR, Serum, and Everstake Capital.
According to DeFi Llama, Everlend had nearly $400,000 in total value locked (TVL) during its peak. However, the protocol suffered a significant decline in the wake of the FTX crash, which had a negative impact on market liquidity.
Everlend is the second Solana-based DeFi protocol to shut down in a few days due to crypto winter. On Jan. 27, the Friktion platform announced that it was shutting down its user interface, citing a “difficult market for DeFi growth” as the reason for its decision.
The move came nearly a year after Everlend announced that it had raised $5.5 million in a funding round. In November, the firm even went so far as to launch subcollateralized loans targeting demand for DeFi from institutional investors, shortly before the FTX contagion hit.
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