BlocksInform
Everlend Finance a DeFi lending protocol built on Solana (SOL/USD) has announced the closure of its lending platform citing a liquidity crunch.
In a tweet published at the end of February 1st, everlend finance said it would not continue to develop the platform after its closure.
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
Withdraw-only mode
Since making the announcement, the Everlend team has switched the platform to withdraw-only mode and users have been asked to withdraw their funds. The announcement states that the file will remain open for withdrawals until all withdrawals are processed. All funds collected and lapsed will also be covered over the next two weeks.
According to Everlend, leaving the platform to continue operating under current conditions would be a gamble due to the shortage of cash in the face of the challenging credit industry. At the time of closing, the platform was controlling a total locked value of approximately $400,000 based on defillama data. Its business had drastically declined after the collapse of FTX.
The team went ahead to say that the shutdown will only affect the Everlend app front end and the codebase will be made open-source for users to continue building solutions using its technology.
Everloan finance is currently the second challenging Solana-based lender to close in 2023. Friktion, a Solana-based defi yield platform, shut down its loan application in January because of the challenges facing the crypto industry.
