Solana DeFi Platform Friktion is Shutting Down its Services

Solana DeFi Platform Friktion is Shutting Down its Services

Friktion noted that "a tough market for DeFi growth" forced the platform to close its user interface.

Solana-based decentralized finance (DeFi) and crypto-asset management platform, Friktion is shutting down its user platform.

In the most recent announcement shared on January 27th, the company was urging its investors to withdraw their funds.

Did you know?

Want to get smarter & wealthier with crypto?

Subscribe - We publish new crypto explainer videos every week!

What is Polygon in Crypto? (Animated Explainer)

What is Polygon in Crypto? (Animated Explainer) What is Polygon in Crypto? (Animated Explainer)

On January 25th, Friktion started moving all “Volts into Withdrawal-Only mode on Friktion’s User Interface.” Therefore, deposits are no longer available.

Friktion’s Volts are protocols designed for DeFi investments. In a nutshell, Volt allows customers to earn revenue from investment pools.

It is worth noting that despite the user interface shutting down, the underlying protocol will “continue to function as designed.”

When talking about the reasons behind such a decision, Friktion noted that “it has been a tough market for DeFi growth in recent months.” The company went into more detail by stating:

Costs have outpaced revenue which is making us re-evaluate strategy going forward, starting with sunsetting the user platform. The decision, while challenging, was made to provide optimal value for all stakeholders including users and community members.

In its announcement, Friktion noted that it is “a strong believer in the future of Solana DeFi and will continue to support the ecosystem where it can.”

The company celebrated that during its time, it reached almost 20,000 wallets, passed $3 billion in trading volume, and achieved $150 million in total value locked (TVL). On top of that, at the beginning of 2022, the company raised $5.5 million in a funding round led by Jump Crypto, Solana Ventures, Tribe Capital, etc.

The platform also had a rather significant board. Friktion’s board members included now-bankrupt Alameda Research, Ledger Prime, Orthogonal Trading, Genesis Trading, and CMS Holdings.

Gile K. - Crypto Analyst

by Gile K. - Crypto Analyst, BitDegree