Everlend Finance, a Ukrainian DeFi lending aggregator on the Solana blockchain, has shut down its front-end software.
The platform adds its name to a growing list of Solana DeFi protocols that have failed due to a bear market that has lasted for a full year as well as the failure of the FTX and Alameda Research.
Everlend blames liquidity crunch
On February 1st, Everlend made the decision to discontinue its loan app public. The team attributed its choice to the increasingly constrained liquidity conditions in the DeFi loan and cryptocurrency markets as a whole.
Everlend said that it has enough runway to continue running its business, but doing so would be risky given the status of the market right now. The front-end app of the Solana DeFi lender is now only available for withdrawals.
All user deposits have been transferred to vaults on the site, where users can withdraw their money. Customers of Everlend have been advised to withdraw their contributions as soon as possible, although the company has reassured users that the app will remain active until all funds have been withdrawn.
Everlend claims it won’t carry out further development after the app is eventually shut down. However, the group announced that it would make its technology stack open-source so that others may create their own applications.
Everlend declared that it still believed in the Solana ecosystem’s future even after ceasing operations. The group promised to keep coming up with new ideas.
Before its closure, Everlend was not a significant DeFi lender on Solana. The platform did not reach a total value locked of up to $1 million during its run, according to data from DeFiLlama.
The project did, however, receive financial assistance from well-known donors like GSR and the Serum Foundation.The most recent Solana DeFi lender to leave the market is Everlend.
Another of these protocols, Friktion, shut down its app in January due to challenging market conditions.The Solana ecosystem initiatives seem to be in a much worse state than the crypto sector, which had a challenging 2022.
This is probably because of the additional stress brought on by the failure of FTX and Alameda Research. Both initiatives, as well as its former leader Sam Bankman-Fried, openly supported the Solana space.