Everland Finance Shuts Down Its DeFi Operations
The Solana-based decentralized finance (DeFi) protocol, Everland Finance, has announced the termination of its operations and has invited users to withdraw their funds from the platform. Despite having “sufficient headroom” to continue its operation, the team cited unfavorable market conditions as the main reason for the shutdown.
Market Liquidity Takes a Toll on Everland
Everland announced the decision on Twitter on February 1, explaining that despite having enough runway, the lack of liquidity in the market, which it is 100% dependent on, made pressing forward a gamble.
The team emphasized, “Unfortunately, right now liquidity is just not there and this is 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.”
We are deeply saddened to announce that as of today our team has decided to close down https://t.co/UiTuuSdyrB and won’t continue its development — Everlend (@EverlendFinance) February 1, 2023
Core protocol deposits have been transferred to vaults, and the app will be in cash-out-only mode until all user funds have been withdrawn.
All collected and unused funds, along with third-party payments, will be “covered” within the next two weeks, and the protocol’s codebase will be opened, allowing others to continue building solutions on top of it. The protocol’s roadmap for the next few months included the launch of its management platform and money market, but unfortunately, the unfavorable market conditions caused by the collapse of FTX have led to its termination.
Second Solana-based DeFi Protocol to Close its Doors
Everland is the second Solana-based DeFi protocol to shut down due to the unfavorable market conditions brought about by the “crypto winter”. The Friktion platform announced its shutdown on January 27, citing the “difficult market for DeFi growth” as the main reason.
Everland had raised $5.5 million in a funding round nearly a year ago and had even launched collateralized lending targeting institutional investor demand for DeFi just before the FTX debacle. At its peak, Everland held nearly $400,000 in total locked value (TVL), according to DefiLlama.
However, the protocol experienced a significant decline after the collapse of FTX, which had a negative impact on market liquidity.