Thursday, April 11, 2024
12.5 C
New Jersey

Decentralized Finance Project Yield Protocol to End Borrowing and Lending Operations by December 31, 2023

Must read

Gherardo Fiorenzo
Gherardo Fiorenzo is an Italian author with a unique perspective shaped by his experiences in Italy and the US. His thought-provoking articles, short stories, and reviews explore the intersections of language, identity, and culture.

Decentralized Finance Project Yield Protocol to End Borrowing and Lending Operations by December 2023

The Yield Protocol, a decentralized finance project, has announced that it will be terminating all borrowing and lending operations by December 31, 2023. This decision was made due to a lack of continuous demand for fixed-rate borrowing and the increasing regulatory challenges in the United States, Europe, and the United Kingdom. The project plans to support its users until the deadline, but will only provide limited support for withdrawals afterwards.

Background on Yield Protocol

Established in 2020, Yield Protocol introduced fixed-term and fixed-rate lending services in the decentralized finance market. The project gained traction and raised $10 million in a Series A financing round led by Paradigm, Framework Ventures, and other venture capitalists. The team believed that fixed-rate borrowing would be necessary to onboard the first billion users to DeFi.

Setbacks and Recovery

In March 2023, Yield Protocol faced a setback when the non-custodial lending protocol Euler Finance was hacked, resulting in losses of $1.5 million. However, the project managed to recover and resumed its operations a few months later in June 2023.

Conclusion

Despite its initial success, Yield Protocol has made the difficult decision to wind down its operations by the end of 2023. The project cites a lack of demand and regulatory challenges as the main reasons for this decision. Users will be supported until December 31, 2023, with limited withdrawal support thereafter.

Additional Resources

For more information, you can read the official announcement by Yield Protocol. You may also be interested in a related report on hacker activity in the cryptocurrency space.

Stay Updated

for the latest updates on decentralized finance and other cryptocurrency news.

More articles

Leave a Reply

Latest article