Decentralized finance undertaking Yield Protocol stated all borrowing and lending operations would finish by Dec. 31, 2023.
Yield Protocol, which raised $10 million backed by Paradigm, Framework Ventures, and different enterprise capitalists, is the newest defi undertaking to shutdown.
In an X thread on Tuesday, Oct. 3, Yield Protocol stated the choice was made because of the lack of “sustainable demand for fixed-rate borrowing” in addition to the “more and more difficult regulatory surroundings within the U.S., Europe, and the U.Ok.” The undertaking emphasised it plans to help customers till Dec. 31, 2023. After the deadline, the undertaking will supply solely restricted help for withdrawals.
Based in 2020, Yield Protocol supplied fixed-term and fixed-rate lending companies on the decentralized finance market.
In August 2020, Allan Niemerg, founding father of Yield Protocol, praised in a weblog put up the undertaking’s perspective, saying defi “could be vastly improved with fixed-rate, fixed-term borrowing and lending.”
A yr later, in June 2021, Yield Protocol raised $10 million in Collection A funding spherical led by Paradigm.
The startup was additionally backed by Framework Ventures, Symbolic Capital Companions, CMS Holdings, Variant, and the DeFi Alliance.
On the time, Niemerg stated the workforce believes that “fixed-rate borrowing shall be important for DeFi to onboard its first billion customers.”
Yield Protocol was amongst defi protocols that suffered $1.5 million in losses after the non-custodial lending protocol Euler Finance was hacked in March 2023.
Nevertheless, the protocol full recovered from the incident a number of months later, in June 2023.