Friktion, the DeFi project on Solana, has announced it will wind up operations. The platform has closed down deposits and advised users to withdraw their funds.
The crypto market witnessed projects suspending withdrawals and filing for bankruptcy in 2022. This eventually resulted in millions of users’ funds being stuck in the platforms due to illiquidity. But Friktion, a DeFi project on Solana, has voluntarily turned the lights off for good, allowing users to withdraw from the platform.
The project has announced to “sunset” its user platform. The team informed users to withdraw from the platform and also scrapped all withdrawal fees.
The announcement of the closure of the platform will be made in parts. Currently, only the first part is out on Medium. The Discord community manager, C.M. Wulf, informed users that the second part of the announcement would shed more light on the platform’s closure. However, he briefly mentioned that with the operational costs being more than the yield, the team realized that the project could not be sustained for long.
The community has shown their support on the Discord chat and wished the team luck. LuciusVorenus, a community member, says, “Just a quick note to say thanks to the Friktion team. It was a cool product, and I was excited for it and thought it would work out differently, I’m sure you did too.”
However, some users have also demanded a refund on their NFT purchases.
The Product Offerings
Friktion was primarily a portfolio management platform, which then moved on to lending services. It provided users with various return-generating strategies known as Volt.
At its peak, Friktion had 20,000 wallets registered, passed $3 billion in trading volume, and had $150 million in Total Value Locked (TVL).
The project also launched “Lightning OG,” a collection of 2,222 NFTs currently trading on MagicEden at a floor price of roughly $5.
As the project is shutting down permanently, its main operation is processing withdrawals.
Got something to say about Friktion or anything else? Write to us or join the discussion on our Telegram channel. You can also catch us on TikTok, Facebook, or Twitter.
For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.
Disclaimer
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.
Source: https://beincrypto.com/solana-defi-project-friktion-shuts-up-shop-no-longer-cost-effective/