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Everlend, Built on Solana, Shuts Down Due to Insufficient Liquidity

everlend, built on solana, shuts down due to insufficient liquidity

On February 1st, Everlend Finance–a Solana-based DeFi protocol– took to Twitter with an announcement that they were winding down their operations and encouraging customers to withdraw funds from the platform. The team explained that although there was sufficient “runway” for continued operation, it would be a risk in light of current market conditions. In particular, they indicated:

“Unfortunately, liquidity is scarce currently, affecting the borrow/lend market that Everlend relies on. In these conditions, continuing operations without a sufficient runway would be a high-risk endeavor. We are thus taking the proactive step of ending our operations now while we still have some resources left.”

The Platform Will Only Be In “Withdrawal” Mode

Everlend has reported that all deposits from the supporting protocols are currently in vaults, and it can only process withdrawals until such funds have been cleared. In light of this announcement, they suggest their users withdraw their funds as soon as possible. Everlend will cover all unused raised funds plus payments made to third-party contractors within the next two weeks to ensure everyone involved is taken care of during this situation. Additionally, they plan on open-sourcing their codebase so other developers can continue building solutions with it.

everlend was preparing to issue the governance solana token recently

Everlend Was Preparing to Issue the Governance Token Recently

Everlend was initiated in 2021 with investors GSR, Serum, and Everstake Capital. The protocol’s plan for the upcoming months included launching its governance platform and money market. At its peak, it held approximately $400,000 total value locked (TVL), according to DefiLlama. Unfortunately, due to FTX’s debacle, which caused a significant decline in liquidity on the market, the protocol experienced a sharp decrease in TVL.

In this current crypto winter, Everlend is the second Solana-DeFi protocol to discontinue its services. The Friction notified of their impending closure on January 27th due to the difficult market conditions for DeFi development. This news follows closely after a successful $5.5 million fundraising round by Everlend and their launch of an undercollateralized lending system aimed at institutional investors in November; yet no sooner had FTX contagion set in that they were forced into relinquishing operations.

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