Yield Protocol Ceases DeFi Lending Operations

Yield Protocol, a protocol for decentralized finance (DeFi) lending, has decided to close down by the end of the year due to a lack of business demand and global regulatory pressures.

Yield Protocol will cease to exist following the expiration of its December 2023 series on December 29, 2023. In its announcement detailing the “wind down” operation, Yield Protocol affirmed the cancellation of the March 2024 launch of a fixed-rate series.

“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 also contributed to the Yield Protocol’s closure, according to the protocol.

As of today, “liquidity providers for the MS (March-September) strategies will incur no additional fees,” according to the statement.

A tweet verified that “all borrowing and lending will cease on December 31,” two days after the existing series matured.

Numerous other protocol shutdowns occurred in 2023, including the $29 million in total-value closed lending platform Geist Finance and the $16.5 million Discord crypto trading bot None Trading.

In both instances, an external assault was identified as the primary cause of the shutdown.

Geist Finance has permanently ceased operations due to accompanye losses. None Trading stated that it had “lost a significant amount of operational funding” and “team tokens.”