Solana-based DeFi lending platform Everlend has decided to shut down operations and discontinue all its future developments, citing liquidity crisis in the lending market.
“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,” wrote the company in the Twitter thread.
The protocol has urged the users to withdraw all the assets with the app now switched to withdrawal-only mode, which will be active until all user funds are withdrawn.
The team still believes Everland is an excellent product and has open-sourced it for anyone wanting to continue working on it.
Established in 2021, Everlend had a total value locked (TVL) of nearly $400,000 at its peak, as reported by DeFi Llama.
The shutdown comes approximately a year after Everlend disclosed it had raised $5.5 million in a funding round. Its investors consisted of GSR, Serum, and Everstake Capital.
In Nov., the company had introduced undercollateralized lending for institutional investors. Everlend also had plans to unveil its governance platform and money market in the near future.
The DeFi ecosystem on Solana was largely supported by Serum – a consortium that included the Solana Foundation, Bankman-Fried’s FTX, and trading firm Alameda Research. It was the primary liquidity provider for many projects.
The fall of FTX made Serum practically inefficient, thus affecting all other projects, which are struggling to keep up.
Last week, another Solana-based DeFi protocol, Friktion, wound up operations, citing financial constraints.