Solana DeFi protocol Everlend shuts down over liquidity issues

Solana decentralized concern (DeFi) protocol Everlend Finance is closing down its operations and urging clients to retreat funds from the platform.

The institution announced the determination connected Twitter connected Feb. 1, stating that contempt having "enough runway" to proceed operating, it would beryllium a gamble nether existent marketplace conditions. In particular, Everland's squad noted:

"Unfortunately, rn liquidity is conscionable not determination and this is truthful not conscionable astir Solana and the B/L marketplace (on which Everlend is 100% dependent) keeps shrinking. In these conditions pressing guardant is simply a gamble. And adjacent though we had capable runway, we decided to halt now."

Everlend besides noted that deposits from underlying protocols are present successful vaults, and the app volition beryllium successful withdrawal-only mode until the funds are cleared. "[W]e suggest our users retreat their funds asap."

The squad announced that each raised and unused funds, on with third-party contractor payments, volition beryllium "covered" successful the adjacent 2 weeks, indicating that applicable parties volition beryllium made whole. The protocol volition besides open-source its codebase, allowing others to proceed gathering solutions connected it.

We are profoundly saddened to denote that arsenic of contiguous our squad has decided to adjacent down https://t.co/UiTuuSdyrB and won’t proceed its development

— Everlend (@EverlendFinance) February 1, 2023

Founded successful 2021, Everlend's roadmap for the coming months included the motorboat of its governance level and wealth market. Investors successful the protocol included GSR, Serum and Everstake Capital.

According to DeFi Llama, Everlend held astir $400,000 successful full worth locked (TVL) during its peak. However, the protocol suffered a important diminution successful the aftermath of FTX's collapse, which had a antagonistic interaction connected marketplace liquidity. 

Everlend is the 2nd Solana-based DeFi protocol to unopen down wrong a fewer days owed to crypto winter. On Jan. 27, Friktion level announced it would beryllium closing down its idiosyncratic interface, citing a "tough marketplace for DeFi growth" for its decision.

The determination came astir a twelvemonth aft Everlend announced it had raised $5.5 cardinal successful a backing round. In November, the institution adjacent launched undercollateralized lending targeting organization investors’ request for DeFi, soon earlier FTX contagious struck.