Solana DeFi project Friktion shuts down its user platform

Solana decentralized finance (DeFi) platform Friktion is shutting down its consumer interface and urging clients to withdraw their belongings from the protocol, according to a press release on Jan. 26. 

The challenge’s web site will now not ship the identical providers, working in a withdrawal-only mode for all Volts and making deposits unavailable. Friktion’s Volts are structured merchandise for DeFi investments that permit traders to earn a share of the income of funding swimming pools, based on the corporate’s web page.

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Friktion has made the tough determination to sundown its consumer platform, a course of starting with transferring all Volts into Withdrawal-Solely mode on Friktion’s Person Interface https://t.co/zrRbHgr6FV beginning 25 Jan 2023.

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— Friktion⚡ (@friktion_labs) January 27, 2023

The underlying protocol, nonetheless, will stay accessible on-chain. As cited by the corporate, the “robust marketplace for DeFi development in latest months” was the driving power behind the stakeholders’ determination:

“This determination was not made calmly, as Friktion has efficiently navigated quite a few challenges prior to now, together with Luna, FTX, and community outages. The corporate stays a powerful believer in the way forward for Solana DeFi and can proceed to help the ecosystem the place it may possibly.” 

Friktion’s software reached almost 20,000 consumer wallets, passing $3 billion in traded quantity and attaining over $160 million in complete worth locked (TVL) within the first half of 2022 earlier than being impacted by the crypto winter. In November 2022, the corporate even launched undercollateralized lending focusing on institutional traders’ demand for DeFi. 

The choice to close down its consumer interface comes almost a yr after the corporate introduced it had raised $5.5 million in a funding spherical in January 2022. Buyers within the spherical included Bounce Crypto, DeFiance Capital, Delphi Ventures, Solana Ventures and Tribe Capital amongst others.

Among the many names on the platform’s board was Alameda Analysis, FTX’s sister firm that performed a vital position within the trade’s collapse in November 2022. Different board members included Genesis Buying and selling, LedgerPrime, CMS Holdings and Orthogonal Buying and selling.

Friktion didn’t instantly reply to Cointelegraph’s requests for feedback.