Friktion, a decentralized finance yield platform based on Solana, announced that its front end website will be shut down.
Friktion let its customers know that it is time for their assets to be withdrawn, according to a company statement. This translates into the front end site being shut down soon and it will no longer be able to offer the same services. However, the company’s protocol will remain accessible on blockchain.
The first move has already been taken by the platform as it moved all its volts to allow only withdrawals. Volts represent the structured product of Friktion designed for decentralized finance investments. Owners of volt used them to earn shares of the income resulting from investment pools. Furthermore, Friktion’s platform doesn’t allow users to make deposits anymore.
The DeFi platform based its decision on several challenges, stating that it needed to make the difficult choice to shut down. Among the reasons listed by Friktion there are the collapses of the Terra and FTX ecosystems. Also, a number of Solana outages contributed to the increasing number of challenges faced by Friktion across its run.
In April 2022, Friktion registered its peak total value locked at USD 164 million, as reported by DeFiLlama. The value dropped in time at approximately 97 per cent, reaching USD 5 million. During its run, Friktion’s platform traded USD 3 billion and had approximately 20,000 registered users. In November 2022, Friktion rolled out under-collateralized lending in an effort to attract institutional clients.