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The team behind the Solana-based lending protocol Everlend has announced the closure of the project.
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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
“This was a very difficult decision; it took us a month to explore options for moving forward,” the developers said.
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In their reasoning they cited a contraction in the lending/borrowing market and a liquidity crunch.
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The platform has shifted to withdraw-only mode.
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The team noted that it did not lack funding, but believed continuing to operate under the current conditions to be gambling.
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The project\’s codebase will remain open for anyone to use.
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“We believe in the future of DeFi on Solana and will continue to drive innovation and contribute to the ecosystem in any possible way,” Everlend said.
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In early November 2022, the protocol\’s TVL collapsed from above $300 000 to around $100 000.
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This happened amid FTX collapse, the consequence of which was the closing of one of the leading decentralized exchanges on Solana — Serum. The platform was a major liquidity provider for projects on the blockchain.
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In late January, Friktion, the DeFi asset-management platform from the Solana ecosystem, announced that it would stop serving users.
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Mango Markets developers, for their part, said they were ready to relaunch it. The Solana-based project became insolvent after unauthorized withdrawal of assets worth $116 million in October 2022.