As the front-end closes down, Friktion is advising its users to remove funds from the protocol.
Friktion, a Solana decentralised finance (DeFi) platform, announced on January 26 that it is shutting down its user interface and advising users to remove their assets from the protocol.
The project’s website will 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 structured products for DeFi investments that enable investors to receive a cut of investment pools’ earnings.
However, the underlying protocol is still accessible on-chain. As the company cited, “a challenging market for DeFi growth over the past few months” was the driving force behind the stakeholder decision.
This choice wasn’t taken lightly because Friktion has already overcome obstacles like Luna, FTX, and network failures. The business continues to have faith in Solana DeFi’s future and will do everything in its power to assist the ecosystem.
Friction’s application will reach nearly 20,000 user wallets and surpass $3 billion in transaction volume, surpassing $160 million in total (TVL) in the first half of 2022, before the crypto winter hits. I was. In November 2022, the company also launched an unsecured loan targeting institutional demand for his DeFi.
The decision to shut down the user interface comes almost a year after the company announced that it had raised $5.5 million in a January 2022 funding round. Investors in this round include Jump Crypto, DeFiance Capital, Delphi Ventures, Solana Ventures, Tribe Capital, and others.
Names on the platform’s board included his FTX sister company Alameda Research, which played a key role in the stock market crash of November 2022. Other directors include Genesis Trading, LedgerPrime, CMS Holdings, and Orthogonal Trading.