Solana DeFi project Friktion shuts down its user platform
Solana decentralized finance (DeFi) platform Friktion is shutting down its consumer interface and urging prospects to withdraw their property from the protocol, according to a press release on Jan. 26.
The mission’s web site will now not ship the identical companies, working in a withdrawal-only mode for all Volts and making deposits unavailable. Friktion’s Volts are structured merchandise for DeFi investments that permit buyers to earn a share of the income of funding swimming pools, in keeping with the corporate’s web page.
Friktion has made the tough choice to sundown its consumer platform, a course of starting with transferring all Volts into Withdrawal-Solely mode on Friktion’s Person Interface https://t.co/zrRbHgr6FV beginning 25 Jan 2023.
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— Friktion⚡ (@friktion_labs) January 27, 2023
The underlying protocol, nevertheless, will stay accessible on-chain. As cited by the corporate, the “powerful marketplace for DeFi progress in latest months” was the driving pressure behind the stakeholders’ choice:
“This choice was not made calmly, as Friktion has efficiently navigated various challenges previously, together with Luna, FTX, and community outages. The corporate stays a powerful believer in the way forward for Solana DeFi and can proceed to assist the ecosystem the place it might.”
Friktion’s utility reached almost 20,000 consumer wallets, passing $3 billion in traded quantity and reaching over $160 million in complete worth locked (TVL) within the first half of 2022 earlier than being impacted by the crypto winter. In November 2022, the corporate even launched undercollateralized lending focusing on institutional buyers’ demand for DeFi.
The choice to close down its consumer interface comes almost a yr after the corporate introduced it had raised $5.5 million in a funding spherical in January 2022. Traders within the spherical included Bounce Crypto, DeFiance Capital, Delphi Ventures, Solana Ventures and Tribe Capital amongst others.
Among the many names on the platform’s board was Alameda Analysis, FTX’s sister firm that performed an important position within the trade’s collapse in November 2022. Different board members included Genesis Buying and selling, LedgerPrime, CMS Holdings and Orthogonal Buying and selling.
Friktion didn’t instantly reply to Cointelegraph’s requests for feedback.
