Key takeaways:
- Due to a lack of business demand and pressure from international regulations, the DeFi lending protocol, Yield Protocol, has decided to be taken down before the end of the year.
- Yield Protocol stated that the March 2024 fixed rate series launch had been postponed in its announcement describing the “wind down” procedure.
Due to a lack of business demand and pressure from international regulations, the decentralized finance (DeFi) lending protocol Yield Protocol has decided to be taken down before the end of the year.
After the December 2023 series, which is due to mature on December 29, 2023, finishes, the Yield Protocol will no longer exist. Yield Protocol stated that the March 2024 fixed rate series launch had been postponed in its announcement describing the “wind down” procedure. According to the protocol:
“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.”
Yield Protocol was finally shut down due to a number of factors, including unfavorable crypto legislation in the United States, Europe, and the United Kingdom. As of right now, “liquidity providers for the *MS (March-September) strategies won’t accrue any further fees,” it read. The yield protocol stated:
“Additionally, the current regulatory environment in the US, combined with increasing regulatory requirements in Europe and the UK, make it challenging for us to continue to support the Yield Protocol.”
Two days after the current series reaches maturity, “all borrowing and lending will end by December 31,” an official tweet revealed.
Other protocols that were shut down in 2023 included Geist Finance, a lending company with a total value lock of $29 million, and None Trading, a Discord cryptocurrency trading bot with a market cap of $16.5 million.
It was determined that an outside attack was the leading cause of their shutdown in both situations. Losses from a multichain exploit caused Geist Finance to shut down permanently. None Trading claimed to have “lost a significant amount of funding” and “team tokens” necessary for its business.
