Solana DeFi Protocol with Almost $40M Total Value Locked (TVL) Ceases Operations
Jet Protocol, a decentralized finance (DeFi) project built on the Solana blockchain, made a significant announcement on Tuesday. The project will be ceasing its operations, and users are advised to withdraw their funds from the platform before it completely shuts down on February 1st, 2024.
What is Jet Protocol?
Jet Protocol is a DeFi project that offers lending and borrowing services for cryptocurrencies. It also facilitates token swaps and provides a margin system for traders. The project was launched in May 2021 by Jet Protocol Holdings, LLC, a US-based company. It has gained attention from investors since its inception.
Since its launch, Jet Protocol has achieved impressive results. In November 2021, the project reached a total value locked (TVL) of over $38 million, according to DeFiLlama, a blockchain analytics platform. However, the TVL has gradually decreased over time.
The current data indicates that the TVL has plummeted to as low as $325,000, accompanied by a market capitalization of approximately $636,000.
Source: DeFiLlama
Reasons for Jet Protocol’s Shutdown
In a community update shared by James Moreau, the co-founder of Jet Protocol, it was revealed that the project is shutting down due to a lack of funds to sustain its operations. Other entities associated with the project, such as the decentralized autonomous organization (DAO) and the development company Jet Protocol Holdings, LLC, will also cease their activities.
As early as August, Jet Protocol had already started downsizing its workforce due to financial constraints. The remaining funds were allocated to cover essential expenses, such as operating hosting services, RPC services, and other operational costs.
After the wind-down process is completed, the project’s codes will be made open-source. This will allow other developers to use and improve Jet Protocol’s range of products. Moreau encouraged users to “fork the code.”
While users are strongly advised to withdraw their funds from the platform, the co-founder mentioned that any assets remaining in the protocol after February 1st will be left as they are.
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DeFi News
Solana
