Production protocol has announced plans to shut down operations

In a recent announcement, Yield Protocol, a prominent player in the decentralized finance (DeFi) space, announced its decision to cease operations.

As this will not start the March 2024 fixed rate series and all borrowing and lending activities will be completed by December 31, 2023, the yield protocol will expire.

Low demand and regulatory challenges are mentioned in Winding Down

He announced that the product protocol, known as Fixed Income Loans and Loans, is declining. This is after extensive discussions with various stakeholders and is driven by a number of factors. The main reasons stated by the group include the lack of sustainable demand for fixed-rate loans on the platform and the ever-increasing regulatory environment.

We made the difficult decision to break production protocol. The March 2024 fixed rate series will not begin. Only the December 2023 series will remain active for borrowing and lending. All loans and credits are due by December 31st.

— Product Protocol (@rewards) October 3, 2023

In a statement on October 3, the production protocol team said;

“While we think the future is bright for DeFi and fixed-rate markets within DeFi, we felt this decision was necessary because there is currently no interest in fixed-rate lending on a production protocol.”

He added, “The current regulatory environment in the US, combined with regulatory requirements in Europe and the UK, makes it challenging for us to continue to support the production protocol.

Production protocol blocks lending and borrowing services.

According to the statement, borrowing and lending operations are limited to the December 2023 series. For March-September (MS) strategies, Liquidity Providers will not make any additional charges. On December 29, 2023, all remaining series will mature, concluding all credits and credit operations on the platform.

Despite the shutdown plans, Product Protocol is committed to supporting its users for the remainder of the period. After the December series conclusion, they assured customers that opt-out support would be available for a limited time.

The forum will continue to provide updates via the official Twitter account @yield and the Discord channel will remain open to address user questions and provide assistance.