Everlend Finance has closed down its app platform, though it boasts of having adequate funds to continue being operative in the present business environment, the team announced on the 1st of February.
The Everlend team has moved the platform to withdraw-only mode, and customers are implored to withdraw their assets as fast as possible. The app will become active until customers have been able to withdraw all their funds, the announcement explained.
Everland also outlined plans to cover all raised and unused funds within the next two weeks. It explained that the reason for shutting down operations is because of the liquidity crunch facing DeFi lending participants.
The team stated that choosing to stay operational would be a risky attempt. Wednesday’s shutdown notice only concerns the Everland app front end. The Everlend team says it will open-source its codebase so others can continue to build solutions using its technology stack.
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Everlend is a lending company that rides the crest of the highest APYs and the lowest borrowing rates within Solana protocols Everlend continuously offers the highest yield on deposits and the lowest interest rate on loans.
As market conditions change, Everlend deploys automatic rebalancing and refinancing schemes to continually optimize the user’s position. Founded in 2021, Everlend’s roadmap for the coming months included the launch of its governance platform and money market. Investors in the protocol included GSR, Serum, and Everstake Capital.
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Everlend‘s explanation
The company took to Twitter to reveal its decision. In particular, the team noted:
“Unfortunately, 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.”
The team added:
“It was a very tough decision to make. It took us a month to try and explore any options for going forward. The team still thinks that Everlend is an excellent product that will one day become very handy, and Solana is the most efficient chain for its implementation.”
Everlend is the most recent DeFi lender that is Solana-based to stop being operational. In January, Friktion, a different Solana-based DeFi yield platform, shut down its front-end application, citing several difficulties the crypto community as a whole was experiencing.
According to DeFiLlama, Everlend had approximately $400,000 in total value locked up at the height of its strength. When money left the Solana ecosystem in November as a result of the FTX collapse, this number fell precipitously. In Q1 2023, the Ukrainian lending platform intends to change into a DAO under community control.
There have been countless crypto companies that have announced abrupt shutdowns. While some cannot afford to close up shop, they opt for a drastic and ceaseless reduction of their workforce in a bid to remain functional in the market. For employees at crypto-related firms, this is a worrying time, and within a blink of an eye, anything could happen.
The companies are in tandem with the vulnerable state of the market. Thus, a company could choose to suspend activities and go into extinction tomorrow. If not, then it could slash its workforce by 20% or more. It is devastating news for crypto hopefuls to hear about and witness massive shutdowns and layoffs. In the coming days, there could be more shutdown news and layoff revelations.
Though there have been glimpses of an improved market condition, these have not fully enforced a change of tide in the market’s occurrences.
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