Everlend Finance, a Solana DeFi Lender Shutters Operations as Turbulent Crypto Conditions Ease

Everlend Finance Shuts Down Due to Lack of Liquidity

Everlend Finance, a Solana-based decentralized finance (DeFi) protocol, has shut down its operations due to a lack of liquidity. The company announced the decision on Twitter on February 1, 2023.

In a blog post, Everlend’s team said that the decision was made after careful consideration of the current market conditions. The company said that the borrowing and lending market has been shrinking, and that there is not enough liquidity to support Everlend’s operations.

The company also said that it had “enough runway” to continue operating, but that it decided to shut down now because it did not want to gamble on the future of the market.

Everlend encourages its users with deposited funds to remove them from the protocol. The app will continue to operate until all withdrawals have been processed.

The project also announced that the codebase for the protocol would become open-source (back-end), so that “anyone could use what we’ve built and continue the work.”

Everlend is the second Solana-based DeFi yield platform to shut down in recent weeks. On January 27, Friktion platform announced it would be closing down its user interface.

The shutdown of Everlend is a sign of the challenges facing DeFi protocols in the current market environment. The DeFi market has been hit hard by the recent crypto market crash, and many protocols have seen their liquidity levels decline.

The shutdown of Everlend is also a reminder of the risks involved in investing in DeFi protocols. DeFi protocols are often experimental and can be subject to hacks or other unforeseen problems. Investors should carefully consider the risks before investing in any DeFi protocol.