Yeti Finance recently announced that it will be shutting down operations. The official announcement came on Yeti Finance’s X/Twitter channel.
The primary reason behind the decision is a severe drop in TVL and revenue. In addition, Yeti Finance stated that the crypto circle had been shaky for a while. This pushed the Yeti team to make cuts.
From the get-go, Yeti had tried to deliver the best protocol experience for borrowing against a versatile asset portfolio on Avalanche. The team always believed in the cause, and so the founders kept their tokens to prioritize security.
However, the platform has encountered substantial challenges in the previous year. As targeted and pervasive assaults increased, the cryptocurrency market became turbulent. Due to the scarcity of available resources, Yeti made the strategic decision to prioritize security enhancements above all else.
Protecting user funds in the ongoing crypto market was the primary focus of the team. While Yeti managed to reach this goal, the network failed to maintain the scale needed to sustain its protocol.
Besides this, Yeti faced several unexpected occurrences and challenges. One of them was YUSD, which had a sizable portion of ownership. It meant that a system of redemption would happen at any given moment.
Such complex difficulties have no simple solutions, and delivering new features under these conditions proved perilous. The Yeti team concentrated on resolving as many difficulties as possible before deciding that shutting down would be the most professional and appropriate course of action.
Yeti is allowing YETI holders to redeem 90% of its current treasury to thank the community. The remaining 10% will be used to close the platform. Tokens in team members’ possession will not be redeemed, guaranteeing that everything belongs to the community.
The platform will increase its interest rates on outstanding loans for the coming 3 months. It will encourage trove owners to wrap up their positions and withdraw the funds. Here is how the interest rates will be:
- January 27, 2024 – 7.5%
- February 17, 2024 – 15%
- March 10, 2024 – 25%
Yeti closed the thread by thanking the community for their support.