Yield Protocol to Terminate Operations by End of 2023 Amid Regulatory Concerns and Low Demand
Summary:
Facing a lack of sustainable demand and increased global regulatory pressures, decentralized finance (DeFi) lending platform Yield Protocol plans to shut down by the end of 2023. The closure will follow the maturity of its December 2023 series, and the planned March 2024 fixed rate series has been cancelled. All lending and borrowing activities will end by December 31st. In 2023, other similar platforms have also shut down, including the Geist Finance loaning platform and the None Trading crypto trading bot.
The decentralized finance (DeFi) lending platform, Yield Protocol, has announced that it will end operations by the close of 2023, due to insufficient business interest and growing global regulatory challenges. Yield Protocol will cease operations following the completion of its December 2023 series, which is scheduled to mature on December 29, 2023. In its public statement explaining the closure process, Yield Protocol confirmed the cancellation of the fixed rate series set for March 2024. Yield Protocol expressed that, despite the promising future of DeFi and fixed rate markets within DeFi, the decision was essential as there isn’t enough continual demand for fixed-rate borrowing on Yield Protocol currently. In addition to lack of demand, increasing crypto regulations in areas including the US, Europe, and UK posed significant challenges to Yield Protocol, leading to its decision to close. Effective immediately, “the *MS (March-September) strategies will no longer accumulate any more fees.”. Yield Protocol decided to close, and therefore will not launch the fixed rate series for March 2024. Now, only the December 2023 series will continue for borrowing and lending. All lending and borrowing will be terminated by December 31st, as announced on its official tweet.
The year 2023 also saw several other protocol-level closures including the $29 million TVL loaning platform Geist Finance and the None Trading Discord crypto trading bot valued at $16.5 million. In both instances, their closures were primarily attributed to external attacks. In the wake of Multichain exploit losses, Geist Finance permanently stopped operations. None Trading revealed it had lost a substantial funding amount, as well as crucial team tokens required for its activity.
Published At
10/4/2023 1:10:07 PM
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