Everlend Finance A Solana-based DeFi Platform Shuts Down
Everlend Finance, a Ukraine-based DeFi lending platform operating on the Solana blockchain, has discontinued its front-end application due to decreasing market liquidity. Everlend announced the discontinuation of its lending services earlier in the week.
The company also blamed the tightened liquidity in the DeFi space and the general crypto sector.
Everlend Blames Poor Liquidity Situation In The DeFi Space
Everlend joins the expanding list of Solana-based DeFi firms that could not sustain operations in the face of a prolonged bear market and the downfall of FTX. According to Everlend, it has sufficient financial resources to continue operating.
However, given the present market conditions, continuing would have been risky. Consequently, Everlend has placed its front-end application in a withdrawal mode.
In addition, the platform has transferred all user deposits to vaults, allowing customers to retrieve their funds. Furthermore, Everlend encouraged its users to withdraw their deposits quickly.
The Everlend team has assured them that the app will remain functional until users have removed all their assets. The DeFi protocol also said it would no longer release updates for the app once the platform is closed.
Fortunately, the team has indicated that they will make their technology stack open-source, allowing others to create their apps. Everlend expressed confidence in the future of the Solana ecosystem and pledged to continue innovating.
Before its shutdown, Everlend was not among Solana’s leading DeFi lending platforms. According to DeFiLlama, the platform did not reach a total value locked (TVL) of $1 million during its operational existence.
Everlend Joins Other Solana-Based Protocols Affected By FTX Collapse
At its highest point, Everlend had a TVL of nearly $400,000. Besides, the protocol experienced a substantial decrease in its TVL following the collapse of FTX, which had a detrimental effect on its market liquidity.
Despite this, the project received funding from giant investors, including the Serum Foundation and GSR. Meanwhile, Everlend is not the first Solana-based DeFi lender to leave the crypto market.
In January, another protocol, Friktion, also announced that it would shut down its app due to challenging market conditions. Despite the challenges faced by the cryptocurrency industry in 2022, the challenges for projects in the Solana ecosystem were greater.
This is a result of the additional consequences of the downfall of Alameda Research and FTX. Both entities and their former CEO, Sam Bankman-Fried, publicly supported the Solana ecosystem.
Significant NFT projects within the Solana ecosystem, such as y00ts, have relocated to other networks, such as Polygon. However, there may be a resurgence in the Solana DeFi sector. New protocols are currently bringing structured products to the market.
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