Key Takeaways
- Over $3.6 million in crypto remained within the platform’s contracts after the deadline passed.
- PancakeSwap announced that it would no longer support DeFi Edge’s vaults and advised users to withdraw funds
On October 14, leading DeFi protocol, Edge, unexpectedly stopped allowing deposits to its strategy contracts through its platform, causing concern among its users. Investors, many of whom provide liquidity to decentralized exchanges using the platform, now face uncertainty with over $3.6 million still locked in the system’s smart contracts.
The freeze follows a period of transition for DeFi Edge, with the platform notifying users of changes over the last month. On September 30, the team announced that certain strategies, particularly those related to Camelot on the Arbitrum network, would be “delisted.”
They warned users to withdraw funds by October 10, after which those specific strategies would no longer be maintained. However, the latest deposit block, imposed on October 14, has impacted all strategies, leaving users confused and concerned about the status of their funds.
Despite the halt in deposits, withdrawals remain active for now, though many investors are growing anxious. Some users did not remove their liquidity by the initial October 10 deadline, potentially due to a lack of clear communication. According to blockchain analytics platform DefiLlama, over $3.6 million in cryptocurrency remained within the platform’s contracts after the deadline passed.
DeFi Edge has been popular among liquidity providers for decentralized exchanges, offering automated services such as rebalancing and fee collection. The protocol integrates with multiple major exchanges, including PancakeSwap, QuickSwap, and Camelot. By late September, the platform was managing over $4.8 million in assets.
Adding to the uncertainty, PancakeSwap, a key partner, announced on October 4 that it would no longer support DeFi Edge’s vaults and advised users to withdraw funds by October 10. DeFi Edge echoed this on October 6, urging users to remove their liquidity through PancakeSwap’s interface. However, despite these warnings, many users appear to have missed the opportunity, as DeFi Edge’s app did not prominently display the changes during this period.
Now, users attempting to interact with the platform receive a message stating, “You are not whitelisted. Please reach out to the DeFi Edge Discord community.” This message affects all strategies on the platform, including those unrelated to earlier announcements. Attempts to get answers from DeFi Edge’s team have been met with silence, and the protocol’s Discord channel lacks clear guidance on how users can proceed.
