- Everlend Finance has closed down its lending app.
- Users have been advised to withdraw their assets.
- The crypto lender has blamed the current liquidity crunch in the market for the shutdown.
Everlend Finance a DeFi lending protocol built on Solana (SOL/USD) has announced the closure of its lending platform citing a liquidity crunch.
In a tweet late February 1, Everlend Finance said that it will not continue with the development of the platform after shutting it down.
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
Withdraw-only mode
Since making the announcement, the Everlend team has switched the platform to withdraw-only mode and users have been asked to withdraw their funds. According to the announcement, the up will remain open for withdrawals until all the withdrawals are processed. All raised and unused funds will also be covered within the next two weeks.
According to Everlend, leaving the platform to continue operating in the current conditions would be a gamble because of the liquidity crunch facing the DeFi lending industry. At the time of its closure, the platform controlled a total value locked of about $400,000 according to data from DeFiLlama. Its business had drastically declined after the collapse of FTX.
The team went ahead to say that the shutdown will only affect the Everlend app front end and the codebase will be made open-source for users to continue building solutions using its technology.
Everlend Finance is now the second Solana-based DeFi lender to shut down in 2023. Friktion, a Solana-based DeFi yield platform, closed down its lending app in January due to the challenges facing the crypto industry.