Solana-based DeFi project Friktion asks users to remove funds

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Key Takeaways:

  • Friktion, a Solana DeFi project, is retiring its user platform.
  • The project’s TVL once exceeded $150M.

 Solana DeFi yield platform Friktion is down to suspend  its front end website, and clients are being advised to withdraw their assets. Starting on January 25, 2023, all Volts will be placed in Withdrawal-Only mode on Friktion’s User Interface.

As described in the  company’s website, Friktion’s Volts are structured products for DeFi investments that enable investors to receive a cut of investment pools’ earnings.

This marks the regrettable conclusion of a project whose Total Value Locked once exceeded $150 million (TVL). As a result, the team urged customers to withdraw their money (fee-free) as soon as the “sun setting” procedure started.

The project’s website will no longer provide the same services and will only be available for withdrawals for all Volts, with no deposit functionality.

The press release claims that the Friktion team and community administrators will be accessible via Discord to respond to any queries users may have and to offer support.

The business claims that this choice was not taken hastily because Friktion has already overcome numerous obstacles like Luna, FTX, and network disruptions.

The business continues to have a lot of faith in Solana DeFi’s future and will do everything it can to assist the ecosystem.

Even though the market sentiment is currently quite low, users have yet again been let down by a well-known project.

The platform recognises that people can be dissatisfied and that everyone may be having a difficult time right now. The shift should go as smoothly as possible, according to Friktion.

The dramatic fall of Sam Bankman-FTX/Alameda Fried’s empire in November is thought to have coincided with the protocol’s final leg down.

In recent months, the market has been challenging for DeFi expansion. Costs have surpassed revenue, forcing several players to rethink their long-term plans.

Before being affected by the crypto winter in 2022, Friktion’s application had over $160 million in total value locked (TVL), over 20,000 user wallets, and exchanged over $3 billion in traded volume.

 The business even started undercollateralized lending in November 2022 in an effort to meet the demand for DeFi from institutional investors.

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Aadrika Sharma
Aadrika Sharma

I enjoy writing and try to learn new things every passing day!

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