Decentralized finance (DeFi) lending protocol Yield Protocol has announced its decision to shut down by the end of the year due to a lack of commercial demand and global regulatory pressures.
The Yield Protocol will cease to exist after the end of the December 2023 series, which is scheduled to mature on December 29, 2023. advertisement In detailing the “termination” process, the Return Protocol confirmed that the launch of the fixed price chain in March 2024 has been cancelled. The protocol stated:
“While 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 for fixed interest rate borrowing on the yield protocol.”
Unfavorable cryptocurrency regulations in the US, Europe and the UK were also among the reasons that eventually led to the shutdown of Yield Protocol. As of today, “liquidity providers for *MS (March-September) strategies will not incur any additional fees.”
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
Finally, “all borrowing and lending will end by December 31,” two days after the current series matures, an official tweet confirmed.
Related: Binance will stop BUSD lending by October 25th
2023 saw several other protocol closures, which included the $29 million captive lending platform Geist Finance and the $16.5 million Discord Non Trading cryptocurrency trading bot.
In both cases, the primary reason for their closure was due to an external attack. Geist Finance has been permanently shut down due to losses caused by the Multichain exploit. Nothing Trading said it had “lost a significant amount of funding” and “team tokens” critical to its operations.