<\/p>\n
A DeFi protocol that once attracted $22 million in total value locked (TVL) and boasted some of the industry\u2019s top venture capital backers is shutting down operations.<\/p>\n
Yield Protocol\u2019s closure, announced Tuesday, represents the latest casualty of a bear market that has seen multiple former high-flyers shutter their projects.<\/p>\n
Yield Protocol\u2019s X account announced that the protocol would \u201cwind down.\u201d The protocol offered duration-based fixed-rate lending and borrowing on stablecoins, and noted that borrowing and lending would cease in December 2023.\u00a0<\/p>\n
In a follow-up tweet, Lead Engineer Alberto Cuesta Ca\u00f1ada thanked \u201ceveryone for all your support during these years.\u201d\u00a0<\/p>\n
Yield Protocol\u2019s website lists backers like Paradigm, Framework Ventures, CMS, and Robot Ventures. The platform attracted over $22 million in TVL at its April 2022 peak, and sits at just over $2 million today.\u00a0<\/p>\n
A protocol spokesperson cited lack of demand and an uncertain regulatory environment as key drivers behind the decision to cease operations.\u00a0<\/p>\n
A team representative did not respond to a request for comment by publication time.\u00a0<\/p>\n
Yield Protocol isn\u2019t the only DeFi project to wind down in recent weeks. In September, Avalanche-based yield protocol GRO held a DAO vote to cease operations<\/a>, and in July Algorand-based lending platform AlgoFi announced its closure in a blog post<\/a>.\u00a0<\/p>\n Much of the DeFi downturn is attributable to an industry-wide activity slump. DeFi\u2019s aggregate TVL is down 75% from 2021 highs of $320 billion to just under $80 billion today \u2013 part of a pullback in overall onchain activity<\/a>.<\/p>\n Smaller startups may be among the hardest hit. In a recent tweet, BlockTower Capital founder Ari Paul said that there\u2019s a growing market for down rounds of between 70-90% equity.\u00a0<\/p>\n Don\u2019t miss the next big story \u2013 join our\u00a0free daily newsletter<\/a>.<\/strong><\/p>\n
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