BlocksInform
Solana decentralized finance (challenge) protocol everlend finance closes its operations and encourages customers to withdraw funds from the platform.
The company announced the decision on Twitter on Feb. 1, affirming that in spite of having "enough track" to continue to operate, this would be a bet under current market conditions. In particular, Everland’s team noted:
“Unfortunately, rn liquidity is just not there and this is so not just about Solana and the B/L market (on which Everlend is 100% dependent) keeps shrinking. Under the circumstances, advancing is a gamble. And even if we had enough leads, we decided to stop right there.”
Everlend also noted that the underlying protocol repositories are currently in the vaults, and the application will only withdraw until the funds are cleared. We recommend that our users remove their funds as soon as possible."
The team announced that any funds raised and unused, as well as payments from third-party contractors, will be "hedged" over the next two weeks, indicating that the parties involved will be compensated. The protocol will also be open-source its code base, allowing others to continue to build on it.
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
Everlend's road map for the months ahead included the launch of its governance and money market platform. The protocol was established in 2021 and its investors included the gsr, the serum and the capital with permanent participation.
According to defillama, everlend held close to $400,000 in total locked value (DVT) at its peak. However, the protocol fell significantly following the collapse of ftx, which had a negative impact on market liquidity.
Everlend is the second challenge protocol based on Solana to be stopped in a few days because of crypto winter. On Jan. 27, Friktion platform announced it would be closing down its user interface, citing a “tough market for DeFi growth."
This decision was made almost a year after Everlend announced that it had raised $5.5 million over one round of funding. In November, the company even launched underfunded loans aimed at the demand of institutional investors for challenge, shortly before the FTX contagion.
