Decentralized finance (DeFi) lending protocol Yield Protocol announced its decision to shut down by the end of the year due to a lack of business demand and global regulatory pressures.
Yield Protocol will cease to exist after its December 2023 series ends, which is slated to mature on December 29, 2023. In its announcement detailing the “wind down” operation, Yield Protocol confirmed that the March 2024 fixed rate series launch had been canceled. The 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 crypto regulations in the United States, Europe and the United Kingdom were also among the reasons that ultimately led Yield Protocol to shut down. Starting today, “liquidity providers for the *MS (March-September) strategies won’t accrue any further fees,” it stated.
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
Finally, “all borrowing and lending will end by December 31st,” two days after the existing series will mature, an official tweet confirmed.
Related: Binance to shut down BUSD lending by October 25
2023 witnessed numerous other protocol shutdowns, which included the $29 million in total value locked lending platform Geist Finance and a Discord crypto trading bot None Trading valued at $16.5 million.
In both cases, the primary reason for their shutdown was attributed to an external attack. Geist Finance shut down permanently due to losses from a Multichain exploit. None Trading said it had “lost a significant amount of funding” and “team tokens” crucial for its operations.