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.
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