The Solana-based DeFi platform Friktion announced plans to close its front-end user platform. The consumers are urged to redeem their assets from January 25. The DeFi company confirms that the user platform will only accept withdrawals while suspending other services offered by the website.
Friktion Shuts Down User Interface
A report issued by the Friktion team on January 26 confirms that the DeFi Platform will shut down the user interface. The company has initiated the first move by activating the withdrawal mode to all the available vaults on the platform.
The report reveals that no fee will be involved during the withdrawal, while deposit services have been halted.
Additionally, the Friktion community has been urged to withdraw their assets in the remaining days before the platform completely shuts down.
The Solana DeFi platform has encouraged the user to remain alert to further information issued concerning the matter.
Why is Friktion Shutting Down the User Platform?
Friktion survived the last year’s crypto market meltdown that plunged fast-growing trading platforms such as FTX and Terra Luna to liquidity woes and bankruptcy. The DeFi platform regrets closing operations.
Friktion revealed that the bearish crypto market had limited the growth of the DeFi platform. In addition, the team disclosed that closing the user platform was a difficult decision to make. Per the report, the tough decision involved contributions from Friktion’s key stakeholders, including the customers and the crypto community.
Friktion Next Move
After the unexpected closure of the user platform, the Friktion team anticipates supporting the expansion of the Solana ecosystem. The team firmly believes that the Solana DeFI project will succeed in the future.
The team restated that after developing a Solana-based application, Friktion generated substantial gains of over $3B in trading volumes and created more than 20000 crypto wallets.
On the contrary, in an attempt to cope with market turmoil, Friktion launched an under-collateralized crypto lending product for institutional consumers in 2022. The newly launched product could have generated measurable returns averting exposing the firm to losses.
According to the DeFiLlama report, the DeFi platform was valued at $164B in April 2022. Due to the current crypto market condition, the value has plummeted to $5B, translating to a 97% decline in 2023.
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