Solana-based Everlend shutters operations amid shrinking lending market
Despite considering itself an "excellent product" and having "enough runway," Everlend said it would be a "gamble" to move forward.
Decentralized finance (DeFi) lender Everlend Finance shut down its operations on Feb. 1, citing the liquidity crunch in the lending market.
The Solana-based protocol said that it decided to close its platform despite having “enough runway.” Stating that the lending market is continuing to shrink, Everlend said forging ahead amid the current environment would be a “gamble,” although it considers itself to be an “excellent product.”
The application is now running in withdrawal-only mode and will continue to function until all funds are fully withdrawn, according to the announcement. The protocol urged users to withdraw all assets on the platform at the earliest.
Everlend said that it would return all raised and unused funds over the next two weeks. The platform had received funding from investors, including Serum, Everstake Capital, and GSR. The lender will also clear payments to third-party contractors in the next couple of weeks.
The Everlend team has decided to make its code open-source so developers can utilize it to continue building on its technology stack.
At its peak in June 2022, the total value locked (TVL) in Everlend reached $400,000, according to DeFiLlama data. But Everlend’s TVL fell to around $80,000 in November following the FTX debacle, which caused rapid outflow from the Solana ecosystem. At the time of writing, Everlend had $45,620 in TVL.
Everlend is the latest Solana-based DeFi platform to capitulate. DeFi yield platform Friktion shut down last month, citing the turmoil in the crypto ecosystem.