Token

Ondo

Yeti Finance

Avalanche

<a href="https://bitcoinworld.co.in/yeti-finance-announces-plan-to-shut-down-operations/" title="Yeti Finance Announces Plan To Shut Down Operations" rel="noopener noreferrer nofollow"></a>
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Yeti Finance, a prominent protocol in the Avalanche ecosystem, has announced its plan to shut down operations.&nbsp;
The announcement comes as a significant development in the DeFi space and impacts trove owners, token holders, and the broader community.&nbsp;
The decision to cease operations <a href="https://www.cryptopolitan.com/yeti-finance-announces-wind-down-overview/" rel="noopener noreferrer nofollow">was</a> not taken lightly and is a result of various challenges faced by the protocol over the past year.
<h3 id="span-style-font-weight-400-the-journey-and-challenges-of-yeti-finance-span">The Journey And Challenges Of Yeti Finance</h3>
From its inception, Yeti Finance’s primary goal was to establish itself as the leading protocol for borrowing against a diverse portfolio of assets on Avalanche.&nbsp;
The team behind Yeti Finance has always been committed to the vision, with the founders not selling any of their tokens and prioritizing security above all else.&nbsp;
However, the past year has been challenging for Yeti Finance, with a significant drop in Total Value Locked (TVL) and revenue, leading to downsizing and budget cuts.
The crypto industry has faced turbulent times, marked by black swan events and targeted hacks becoming increasingly common.&nbsp;
With limited resources at their disposal, the Yeti Finance team focused on maximizing protocol security to protect user funds and establish themselves as a trusted leader in borrowing.&nbsp;
Despite achieving the goal, the protocol did not reach the scale necessary for long-term sustainability.
See Also: <a class="row-title" href="https://bitcoinworld.co.in/ondo-foundation-to-unlock-and-release-ondo-token-soon/" aria-label="“Ondo Foundation To Unlock And Release ONDO Token Soon” (Edit)" rel="noopener noreferrer nofollow">Ondo Foundation To Unlock And Release ONDO Token Soon</a>
<h3 id="span-style-font-weight-400-deciding-to-wind-down-span">Deciding To Wind Down</h3>
A series of unexpected events further complicated the situation for Yeti Finance. A notable issue was the concentration of YUSD holdings among a small group of users, posing a risk of major redemptions at any time.&nbsp;
These complex challenges, coupled with the risky nature of introducing new features and expanding under such conditions, led the team to the difficult decision that winding down the protocol was the most responsible course of action.
As part of the wind-down process, approximately 90% of the current treasury will be made available for redemption by YETI holders.&nbsp;
The remaining funds will cover necessary wind-down costs. The redemption contract is accessible until February 10th.&nbsp;
Protocol-owned liquidity in the Trader Joe LP pool has been withdrawn, and the AVAX portion has been contributed to the community redemption pool.&nbsp;
Tokens held or allocated to current team members will not be redeemed, ensuring all assets are directed to the community.
<h3 id="span-style-font-weight-400-next-steps-for-users-and-the-community-span">Next Steps For Users And The Community</h3>
Yeti Finance has outlined a plan for users to exit the protocol. Interest rates on outstanding loans will be increased over three months to encourage trove owners to close their positions and withdraw their deposits.&nbsp;
The peg-stability module cap has been lifted to facilitate users in swapping YUSD for repaying loans and withdrawing assets. The stability pool will remain active to support liquidations, but all other pool emissions will cease.
The team reminds users that participation in the protocol and holding related tokens like YUSD has always been at their own risk, as stated in the protocol’s disclaimers and Terms of Service. Users are advised to exit the protocol promptly, as security can never be guaranteed.
See Also: <a class="row-title" href="https://bitcoinworld.co.in/bitzlato-temporarily-suspend-all-bitcoin-withdrawals-due-to-legal-battles/" aria-label="“Bitzlato Temporarily Suspend All Bitcoin Withdrawals Due To Legal Battles” (Edit)" rel="noopener noreferrer nofollow">Bitzlato Temporarily Suspend All Bitcoin Withdrawals Due To Legal Battles</a>
<h3 id="span-style-font-weight-400-conclusion-span">Conclusion</h3>
In closing, the team at Yeti Finance extends a sincere thank you to everyone who has been part of their journey.&nbsp;
The protocol’s existence and operations were heavily reliant on the support of partners and community members.&nbsp;
The wind-down marks the end of a significant chapter in the DeFi space, but the legacy of Yeti Finance and the lessons learned will continue to influence the industry for years to come.
The post <a href="https://bitcoinworld.co.in/yeti-finance-announces-plan-to-shut-down-operations/" rel="noopener noreferrer nofollow">Yeti Finance Announces Plan To Shut Down Operations</a> appeared first on <a href="https://bitcoinworld.co.in" rel="noopener noreferrer nofollow">BitcoinWorld</a>.

Yeti Finance Announces Plan To Shut Down Operations

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