Everlend Finance, a Ukrainian DeFi lending aggregator on the Solana blockchain, has shut down its front-end app because of shrinking liquidity available in the market.
The platform joins a rising checklist of Solana DeFi protocols which were unable to proceed amid a year-long bear market and the collapse of the FTX and Alameda Analysis.
Everlend Blames liquidity crunch
Everlend announced its choice to close down its lending app on Wednesday, Feb.1. The crew blamed the tightening liquidity circumstances within the DeFi lending and crypto house as an entire for its choice. Everlend acknowledged that it had ample runway to proceed its operations however doing so could be a raffle given the present state of the market.
The Solana DeFi lender has now put its front-end app in withdrawal-only mode. The platform has moved all consumer deposits to vaults from which prospects can withdraw their funds. Everlend customers have been urged to take away their deposits as rapidly as attainable however the crew assured customers that the app will proceed to run till all funds have been eliminated.
As soon as the app is lastly shut down, Everlend says it gained’t proceed its growth. Nonetheless, the crew stated that it’ll open-source its know-how stack in order that others can construct their very own purposes.
Regardless of shutting down, Everlend acknowledged that it nonetheless believed in the way forward for the Solana ecosystem. The crew acknowledged that it’ll proceed to innovate.
Everlend was not one of many main DeFi lenders on Solana earlier than its shutdown. Knowledge from DeFiLlama shows that the platform didn’t attain a complete worth locked of as much as $1 million throughout its run. Nonetheless, the undertaking did draw funding assist from notable backers like GSR and the Serum Basis.
One other Solana DeFi lender compelled to give up the market
Everlend is the most recent Solana DeFi lender to exit the market. Friktion, one other of such protocols, shut down its app in January additionally citing tough market circumstances.
Whereas the crypto house endured a tough 2022, the state of affairs seems a lot worse for Solana ecosystem initiatives. That is doubtless as a result of added strain occasioned by the collapse of FTX and Alameda Analysis. Each initiatives and their former chief Sam Bankman-Fried have been public proponents of the Solana house.
Main Solana NFT initiatives like y00ts have even migrated from Solana to different networks like Polygon.
Nonetheless, the Solana DeFi house could possibly be in line for a resurgence as protocols launch structured merchandise to the market.