Algorand-based decentralized finance (DeFi) protocol, Algofi, has announced winding down its operations.
In a statement, Algofi cited a “confluence of events” as the reason behind its decision that has rendered it no longer viable to continue building and maintaining the platform to the “highest standards.” As a result, the platform will soon transition to withdrawal-only mode.
The DeFi platform revealed that closing down all the social media platforms associated with the platform except Discord in a bid to ensure “seamless, unified communication.”
The process of winding down the protocol is estimated to take several months.
In the meantime, the team will work on reducing the collateral factors of the digital asset markets on its platform, enabling liquidity to migrate to other protocols.
“This is obviously not the outcome any of us on the team or in the community hoped for at the outset of this project. We can’t thank the Algorand community enough for their support throughout this journey and can’t wait to see what comes next for Algorand.”
Algofi is the largest DeFi hub in Algorand boasting a TVL of $32.36 million and accounting for nearly 55% of the layer 1 ecosystem’s value.
According to the latest data compiled by DeFiLlama, TVL hit an all-time high of $134 million earlier in February this year, since then, the figures have gone downhill.
Zooming out, Algorithm’s TVL has also plummetted by over 73% since its peak of $218 million last November to $58.35 million at the time of writing.
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