Solana’s decentralized finance (DeFi) protocol, Everlend Finance, is shutting down its operations and urging clients to withdraw funds from the platform.

The company Announced the decision on Twitter on February 1, stating that despite having “enough lead” to continue trading, it would be a gamble under current market conditions. In particular, the Everland team noted:

“Unfortunately, rn’s liquidity is simply not there and this is not just about Solana and the B/L market (which Everlend is 100% dependent on) continues to shrink. Under these conditions, going forward is a gamble. And while we had enough clue, we decided to stop now.”

Everlend also noted that deposits from the underlying protocols are now in vaults, and the app will be in withdrawal-only mode until the funds clear. “[W]We suggest our users to withdraw their funds as soon as possible.”

The team announced that all unused funds raised, along with payments from third-party contractors, will be “covered” over the next two weeks, indicating that the relevant parts will be recouped. The protocol will also open up its codebase, allowing others to continue building solutions on it.

Founded in 2021, Everlend’s roadmap for the coming months included the launch of its money market and governance platform. Investors in the protocol included GSR, Serum, and Everstake Capital.

According to DeFi Llama, Everlend had nearly $400,000 in total value locked (TVL) during its peak. However, the protocol suffered a significant decline in the wake of the FTX crash, negatively impacting market liquidity.

Everlend is the second Solana-based DeFi protocol to shut down in a few days due to the crypto winter. On Jan. 27, the Friktion platform announced that it was shutting down its user interface, citing a “difficult market for DeFi growth” in making its decision.

The move came nearly a year after Everlend announced it had raised $5.5 million in a funding round. In November, the company even launched undercollateralized loans targeting institutional investor demand for DeFi, shortly before FTX caught on.

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