Friktion, a Solana DeFi platform, said on January 26 that it is closing down its UI and advising users to remove their funds from the protocol.
The project’s website would no longer provide the same services and will only be available for withdrawals for all Volts, with no deposit functionality. According to the company’s website, Friktion’s Volts are organized products for DeFi ventures that enable investors to get a cut of investment pools’ earnings.
Solana DeFi Friktion Ends Project
However, the underlying protocol will continue to be available on-chain. The stakeholders’ choice was motivated by the “difficult market for DeFi expansion in recent months,” according to the company:
This choice was not taken lightly because Friktion had already overcome several obstacles including Luna, FTX, and network failures. The business continues to have faith in Solana DeFi’s future and will do all in its power to assist the ecosystem.
Before being affected by the crypto winter in 2022, Friktion’s application had over $160 million in total value locked (TVL), over 20,000 user wallets, and exchanged over $3 billion in traded volume. The business even started undercollateralized lending in November 2022 to meet the demand for DeFi from institutional investors.
Nearly a year after the business revealed it had secured $5.5 million in a fundraising round in January 2022, it has decided to shut down its user interface. Jump Crypto, DeFiance Capital, Delphi Ventures, Solana Ventures, and Tribe Capital were among the investors in the round.
Alameda Research, an FTX subsidiary that was a key factor in the exchange’s demise in November 2022, was one of the names on the platform’s board. Genesis Trading, LedgerPrime, CMS Holdings, and Orthogonal Trading were other board members. The requests for comments from Cointelegraph were not immediately answered by Friktion.
