- The protocol announced the cancellation of the March 2024 launch of the fixed rate series.
- All borrowing and lending would cease on December 31st.
Lacking commercial demand and facing worldwide regulatory challenges, Yield Protocol, a decentralized finance (DeFi) lending protocol, has stated its intention to shut down before the end of the year.
We’ve made the tough decision to wind down the Yield 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 31st. https://t.co/oHnCGgeP13
— Yield Protocol (@yield) October 3, 2023
After the maturity of the December 2023 series on December 29, 2023, Yield Protocol will no longer exist. The DeFi protocol announced the cancellation of the March 2024 launch of the fixed rate series in a release outlining the “wind down” process.
The DeFi protocol stated:
“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.”
Unfavorable Conditions
One of the main reasons why Yield Protocol ended up closing was the unfavorable crypto legislation in the US, EU, and UK. A tweet from the company revealed that all borrowing and lending would cease on December 31st, only two days before the current series matures. Numerous more protocols went offline in 2023, such as Geist Finance and None Trading, a discord crypto trading bot.
An outside assault was suspected as the major cause of closure in both instances. After suffering heavy losses as a result of a Multichain exploit, Geist Finance closed its doors for good. Apparently, None Trading “lost a significant amount of funding” and certain “team tokens” that were essential to running the business.
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