Friktion Shuts Down Its Front End
Friktion, a Solana DeFi yield platform, is shutting down its front end website, with customers urged to withdraw their assets, the company announced on January 27th. This means that while the front end website will no longer provide the same services, the underlying protocol will still be available on the blockchain.
The platform has begun this process by switching all volts to withdrawal-only mode. Friktion’s structured product for DeFi investments is Volts. Volt owners receive a portion of the revenue generated by investment pools. Users’ deposits are also no longer accepted on the platform.
The Solana DeFi platform stated that its decision to shut down was difficult, but that it had faced numerous challenges. Friktion cited the FTX and Terra ecosystem collapses, as well as several Solana outages, as some of the difficulties it encountered during its tenure.
Friktion’s total locked value reached $164 million in April of last year. This value has dropped to $5 million, a 97% decrease. During its operation, the platform traded $3 billion and had over 20,000 user wallets. In November of last year, Friktion launched under-collateralized lending for institutional clients.
(With inputs from Shikha Singh)
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