Solana decentralised finance (DeFi) protocol Everlend Finance will be concluding its operations. It is believed that the platform has asked clients to withdraw funds kept with it, according to Cointelegraph.
“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. In these conditions pressing forward is a gamble. And even though we had enough runway, we decided to stop now,” Everlend’s team stated.
As reported by Cointelegraph, Everlend said that deposits based on underlying protocols are kept in vaults, and that the application will follow a withdrawal-only mode until funds are cleared. Reportedly, all raised and unused funds, along with third-party contractor payments, will be “covered” in the upcoming two weeks. Sources suggest that the protocol will make its codebase open-source, for others to develop solutions on it. In the next couple of months, Everlend is expected to unveil its governance platform and money market.
Moreover, Cointelegraph noted that Everlend is the second Solana-oriented DeFi protocol to be stopped due to implications of the crypto winter. The development happened nearly a year after Everlend clocked $5.5 million through a funding round.
(With insights from Cointelegraph)