- Everlend has changed its app to a withdrawal-only mode.
- The protocol’s codebase was also made public.
Everlend, a DeFi borrowing and lending platform based on Solana, has stated that it would be discontinuing operations. Including further development of the platform. Project leaders explained its end in a statement released Wednesday. Citing a shortage of liquidity and the general contraction of the borrowing and lending market as the main factors.
Everlend has changed its app to a withdrawal-only mode. And requests that any users who have funds in the protocol withdraw them immediately. The protocol’s codebase was also made public. So that “anyone could use what we’ve built and continue the work,” as the project put it.
Even if a long enough runway were available. The team admitted that maintaining and improving the procedure would be a “gamble.”
Everlend stated:
“Liquidity is just not there and this is so not just about Solana and the B/L [borrowing and lending] market (on which Everlend is 100% dependent) keeps shrinking.”
Solana’s TVL Shrinks
Everlend’s suggestion of a liquidity crunch coincides with a shift away from Serum, the ecosystem’s primary liquidity source for the vast majority of projects. This changed in November when it was revealed that the private keys for the project had been stored at the defunct FTX crypto exchange.
It has been difficult to find a viable alternative for Serum’s liquidity pools since they supported the bulk of the Solana DeFi ecosystem and made access to liquidity incredibly efficient. Meanwhile, SOL’s total value locked (TVL) has declined by roughly 6% over the previous 7 days, to $270 million, due to frequent withdrawal from the Solana network.
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