WEB3

Another Project Shutdown: Yield Protocol

Regulatory challenges played a significant role in their decision as "certain features users wanted carried the risk of being illegal".

BSCN

October 4, 2023

Yield Protocol, a collateralized fixed-rate borrowing and lending protocol on Ethereum and Arbitrum has announced its decision to wind down operations, citing a lack of sustainable demand for fixed-rate borrowing and increasing regulatory hurdles.

In a statement released by the team, they confirmed that they would not be launching a March 2024 fixed-rate series and that borrowing and lending would be restricted to the December 2023 series.

When questioned by a user on X about the impact of regulatory challenges on their choice, Alberto Cuesta Cañada, co-founder and technical lead of Yield Protocol responded, saying, "Definitely. Too many of the features users wanted right now carried a risk of being illegal. At the end, the path forward looked too narrow to risk it."

The Yield Protocol team expressed gratitude to their supporters, emphasizing that their contributions would live on in other fixed-rate protocols and the broader Ethereum community. Yield will continue to provide support until the end of the December series and offer assistance with withdrawals for a limited time.

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