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But other Solana-based DeFi platforms are closing their doors.
EverlandSolana-based decentralized financial (DeFi) lending and lending platform, is shutting down the service.
According to Twitter thread posted on February 1, Everlend claims that the move was due to a lack of liquidity and a shrinking lending market.
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The company stated that despite having adequate “runway”, trying to operate in current conditions would be a “stake”.
In commenting on the decision to shut down its service, Everlend noted:
It was a very difficult decision to make, it took us a month to try and explore any options moving forward. The team still thinks that Everlend is an excellent product that will one day become very useful and Solana is the most efficient suite for its deployment.
In its Twitter thread, Everlend noted that it has moved “all caches of the underlying protocol” to Everlend Vaults.
In addition, the company has closed deposits in any form and activate withdrawal mode only. The company notes that the app is set to remain in withdrawal-only mode until “funds are fully withdrawn.”
Besides, Everlend assures that it will cover “all funds raised and not spent along with payments issued to 3rd party contributors” until February 15th.
The team behind Everlend claims to believe in the future of Solana DeFi and, because of this, “will continue to innovate and contribute to its development wherever and however possible.” One of the ways companies are organized to contribute is by making the Everland code base open source.
It should be noted that Everlend is not the first Solana-based DeFi to shut down its service in early 2023.
At the end of January, news broke that the Friktion crypto asset management platform closes the user interface. Friktion claims that “it’s been a tough market for DeFi growth in recent months.” Because of that, the company was forced to “re-evaluate its strategy going forward.”
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