Decentralized finance (DeFi) lending project Yield Protocol is set to wind down by the end of this year due to a lack of demand and regulatory challenges.
The project's December 2023 series will mature on Dec. 29, ending all borrowing and lending on the protocol, according to an announcement on Wednesday.
"We felt this decision was necessary because there is currently not sustainable demand for fixed-rate borrowing on Yield Protocol," Yield said. "Additionally, the current regulatory environment in the U.S., combined with increasing regulatory requirements in Europe and the U.K., make it challenging for us to continue to support the Yield Protocol."
At its peak in April 2022, Yield Protocol had over $22 million in total value locked, but this figure has since dwindled to around $2 million.
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