In a recent announcement, Yield Protocol, a prominent player in the decentralized finance (DeFi) space, revealed its decision to wind down its operations.
This marks the end of the Yield Protocol era, as the fixed interest rate series will no longer be launched in March 2024, and all borrowing and lending activity will cease by December 31, 2023.
Low demand and regulatory challenges mentioned in the liquidation process
Yield Protocol, known for its secured borrowing and lending at a fixed interest rate, has announced that it will end its operations. This comes after extensive deliberations with various stakeholders and depends on multiple factors. The main reasons cited by the team include the lack of sustainable demand for fixed interest rate borrowing on the platform and the increasingly complex regulatory environment.
We have made the difficult decision to end the Return Protocol. The March 2024 fixed rate series will not be launched. Only the December 2023 series remains active for borrowing and lending. All borrowing and lending will end by December 31. https://t.co/oHnCGgeP13
— Yield Protocol (@yield) October 3, 2023
On October 3 statementThe Return Protocol team stated;
“Although we believe the future is bright for DeFi and fixed rate markets in DeFi, we felt this decision was necessary because there is currently no sustainable demand to borrow at a fixed interest rate on the Yield Protocol.”
“The current regulatory environment in the US, combined with increasing regulatory requirements in Europe and the UK, makes it difficult for us to continue supporting the Yield Protocol,” she added.
The Yield Protocol suspends borrowing and lending services
According to the statement, borrowing and lending activities are currently limited to the December 2023 series. Liquidity providers for March-September (MS) strategies will not incur additional fees. On December 29, 2023, all remaining chains will mature, marking the conclusion of all borrowing and lending on the platform.
Despite plans to close, Yield Protocol is committed to supporting its users throughout the remainder. They have assured customers that support for withdrawals will be available for a limited time after the December series ends.
The platform will continue to provide updates via its official Twitter account, @yield, and its Discord channel will remain open to answer user inquiries and provide assistance.
Free Binance $100 (Exclusive): Use this link to sign up and get free $100 and 10% off Binance Futures in your first month (conditions).
PrimeXBT Special Offer: Use this link to register and enter code CRYPTOPOTATO50 to receive up to $7,000 on your deposits.