Decentralized finance (DeFi) lending protocol Yield Protocol announced its decision to shut down by the end of the year due to the lack of business demand and global regulatory pressures.
Yield Protocol will cease to exist after the end of its December 2023 series, which is slated to mature on December 29, 2023. In its announcement detailing the “wind down” operation, Yield Protocol confirmed that the launch of March 2024 fixed rate series has been canceled. The protocol stated:
“While we think that the future is bright for DeFi and fixed rate markets in DeFi, we felt this decision was necessary because there is currently not sustainable demand for fixed-rate borrowing on Yield Protocol.”
Unfavorable crypto regulations in the United States, Europe and the United Kingdom were also some of the challenges that ultimately led Yield Protocol to shut down. Starting today, “liquidity providers for the *MS (March-September) strategies won’t accrue any further fees.”
Finally, “all borrowing and lending will end by December 31st,” two days after the existing series will mature, an official tweet confirmed.
Related: Binance to shut down BUSD lending by October 25
2023 was witness to numerous other protocol-level shutdowns, which included the $29 million TVL lending platform Geist Finance and a Discord crypto trading bot None Trading valued at $16.5 million.
In both cases, the primary reason for their shutdown was attributed to an external attack. Geist Finance shut down permanently due to losses from a Multichain exploit. None Trading said it had “lost a significant amount of funding” as well as “team tokens” crucial for its operations.
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