Solana-based crypto lender Everlend Finance shuts down app

• Everlend Finance has closed its lending app.
• Users are advised to withdraw their assets.
• Cryptocurrency lenders have blamed the market’s current liquidity crisis for the closure.

Everlend finances DeFi lending protocol built on Solana (Sol/US Dollar) announced the closure of its lending platform due to tight liquidity.

Everlend Finance said in a February 1st tweet that it would not continue development of the platform after the shutdown.

We are very sad to announce today that our team has decided to close https://t.co/UiTuuSdyrB and will not continue its development

Everlend (@EverlendFinance) February 1, 2023

Withdrawal only mode

After the announcement, the Everlend team switched the platform to withdrawal-only mode and users were asked to withdraw their funds. Up will remain open for withdrawals until all withdrawals have been processed, according to the announcement. All unused funds raised will also be covered within the next two weeks.

Due to the liquidity crisis facing the DeFi lending industry, it would be a gamble to leave the platform and continue operating in the current situation, according to Everlend. The platform managed a total locked value of around $400,000. After the demise of FTX, its business declined significantly.

The team said the shutdown will only affect the front end of the Everlend app, and the codebase will be open sourced for users to continue building solutions using the technology.

Everlend Finance is the second Solana-based DeFi lender to close in 2023. His Solana-based DeFi yield platform, Friktion, closed its lending app in January due to challenges facing the crypto industry.