Solana’s Everlend Protocol to Close Down

Solana-based DeFi platform, Everlend, has announced that it is shutting down due to a lack of liquidity and a shrinking borrowing and lending market.

The project mentioned that even with sufficient runway, continuing to operate and develop the protocol would be a “gamble.”

Everlend has switched to withdrawal-only mode and encouraged users to remove their deposited funds. The codebase for the protocol will become open-source, allowing anyone to continue the work.

The liquidity squeeze faced by Everlend is attributed to the DeFi ecosystem on Solana moving away from Serum, which was the main liquidity provider for nearly all projects on the platform. This change was prompted by FTX’s collapse in November.