Provide a protocol to permanently ‘reduce’ operations until December 2023
Decentralized financial (DeFi) lending protocol product protocol has announced its decision to shut down at the end of the year due to lack of commercial interest and global regulatory pressures.
The production protocol will cease to exist after the end of the December 2023 series, which is scheduled to mature on December 29, 2023. In an announcement detailing the “winddown” process, Protocol confirmed the March 2024 fixed rate series launch has been cancelled. The protocol states:
“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.
Unfavorable crypto regulations in the United States, Europe, and the United Kingdom were also among the reasons for the eventual shutdown of the production protocol. From today, “liquidity providers will not charge any additional fees for *MS (March-September) strategies,” he said.
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. https://t.co/oHnCGgeP13
— Product Protocol (@rewards) October 3, 2023
Finally, “all loans and borrowings will expire by December 31”, two days after the maturity of the series, confirmed the official Twitter.
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In the year 2023 saw a number of other protocol closures, including lending platform Geist Finance, which was valued at $29 million in total value, and Discord crypto trading bot None Trading, which was valued at $16.5 million.
In both cases, the main reason for their closure is external aggression. Gist Finance has been permanently shut down due to losses from a multichain exploit. Any Trading said it had lost a “significant amount of funding” and a “team token” essential to its operations.
