Friktion, the Solana-based DeFi project, will cease operations, deposit closure has been implemented, and users have been advised to retrieve their funds.
Many crypto projects halted withdrawals & filed for bankruptcy in 2022, leaving millions of user funds stuck due to a lack of liquidity. Unlike others, Friktion, a Solana-based DeFi project, voluntarily shut down and allowed users to withdraw funds.
Friktion has made the difficult decision to sunset its user platform, a process beginning with moving all Volts into Withdrawal-Only mode on Friktion’s User Interface https://friktion.fi starting 25 Jan 2023.
The project announces the end of the user platform, advises users to withdraw funds, and scraps withdrawal fees.
According to the announcement of platform closure made in parts. Discord C.M. Wulf says the first part of the closure announcement is on Medium, with more details in the second part. The project couldn’t sustain due to high costs.
Community supports Friktion on Discord; LuciusVorenus says Thanks Friktion team, great product, disappointed it didn’t work out.
Additionally, some people have also asked for refunds on their NFT purchases, though. Friktion started as a portfolio management platform and expanded to lending w/ return strategies called Volt.
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Moreover, Friktion reached 20k wallet registrations, $3B in trading volume, and $150M TVL at its peak.
Friktion launched Lightning OG, a set of 2,222 NFTs trading on MagicEden with a minimum price of around $5. Processing withdrawals is the project’s primary function when it ultimately closes.