TechFlow reports that Avalanche-based lending protocol Yeti Finance has announced on X (formerly Twitter) its decision to shut down the protocol after discussions, citing user fund safety as the primary concern.
Reasons include a significant decline in TVL and revenue, concentration of most YUSD holdings among a small number of users, and risks of hacking attacks.
Liquidity owned by the protocol in Trader Joe’s LP pool has been withdrawn, with the AVAX portion of this token pair donated to the community redemption pool. Currently, YETI holders can redeem approximately 90% of the funds in the treasury. Interest rates on outstanding loans on the protocol will be increased over the next three months to incentivize loan repayments and deposit withdrawals. Tokens held or allocated to team members will not be eligible for redemption, ensuring all remaining assets belong to the community.
