SOL

Solana DeFi Platform Friktion to Shut Down, Asks Users to Remove Funds

Solana DeFi protocol Friktion urged users to withdraw their funds as it begins shutting down its User Platform. At one time the project's TVL topped $150M.

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January 27, 2023

Friktion UI in ‘Withdrawal-Only’ Mode

RIP, Friktion. The Solana Decentralized Finance (DeFi) platform is shutting down its User Platform, marking the end of a project that at one point surpassed $150 million in Total Value Locked (TVL).

According to a Medium post, Friktion switched its UI to “Withdrawal-Only” mode on Jan. 25. Accordingly, the team strongly encouraged users to remove their funds (with no fees) as the sunsetting process begins.

Friktion has made the difficult decision to sunset its user platform, a process beginning with moving all Volts into Withdrawal-Only mode on Friktion’s User Interface https://t.co/zrRbHgr6FV starting 25 Jan 2023.

(1/🧵)
— Friktion⚡ (@friktion_labs) January 27, 2023

After peaking in the spring, Friktion’s TVL declined as multiple “black swan” events conspired to decimate the entire crypto market in 2022. The final leg down for the protocol occurred in November in conjunction with the spectacular collapse of Sam Bankman-Fried’s FTX/Alameda empire, according to DefiLlama.

The TVL for Friktion now stands at less than $5 million, a decline of more than 95% from its peak.

What is Solana:

Solana is a public, open-source blockchain that allows for smart contracts, non-fungible tokens (NFTs), and various decentralized applications (dApps). The SOL token, which is native to Solana's blockchain, provides network security through staking as well as a means of transferring value.