TechFlow News — UXD Protocol, an algorithmic stablecoin project in the Solana ecosystem, has announced it is shutting down operations and will return $7.5 million in user deposits. The UXD team attributed the closure to insufficient liquidity and the inability of its stablecoin model to achieve product-market fit. A DAO vote is currently underway to approve the shutdown and fund return process, which could take up to two years to complete.
As part of the wind-down process, UXD will burn $7.5 million worth of UXP tokens.
Notably, UXD lost $19.9 million during the October 2022 attack on Mango Markets but successfully recovered the funds afterward.
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