Solana Based DeFi Lending Protocol Shuts Down; SOL Price To Feel The Heat?

Solana (SOL) made a remarkable comeback after sliding into single digits back in December 2022. Solana price jumped by 112% in the last 30 days to trade at $25, at the press time. However, the SOL network has been hit by another bad news amid the recovery.

Solana TVL To Take A Hit?

Everlend Finance, a DeFi lending protocol mode on the Solana blockchain, announced a full closure. The shutdown is led due to a liquidity crunch.

Meanwhile, with constant withdrawal from the Solana network, SOL’s total value locked (TVL) has dropped by almost 6% over the last 7 days to stand at $270 million. However, SOL price has managed to recover from the heavy dump in December.

In a Twitter thread, Everlend stated that it was a very tough decision for the team. However, they tried to avoid this situation by trying and exploring other options over the past month. It added that Everlend is one of the excellent products which will someday become very handy. Will Solana price to drop ahead Read Here…

Everlend Died Due To Liquidity Crunch

Lending protocol revealed that liquidity is just not there and this is not just about the Solana. The borrowing and lending market is on a decline and pressing these conditions ahead is like a gamble.

However, Everlend stated that its codebase will be open-sourced. This would help others to use what their team builds.

As per the details, all the deposits from the underlying protocols have been shifted to Everlend vaults. It is advised to users to withdraw their funds asap. Their app is now set to withdrawal-only mode. All the raised and unused funds including incurred payments to 3rd party will be covered within the next 2 weeks, it added.