• Solana-based DeFi platform Friktion has urged its users to withdraw their funds from the protocol, as it moves to suspend all frontend operations.
• Friktion has disabled its frontend interface to prevent users from initiating new deposits and is in “withdrawal-only mode” to allow users to withdraw their Volt deposits.
• Before the recent insolvency crisis, Friktion reached over $150 million in total-value-locked (TVL) on Solana and recorded about $3 billion in trading volume.
The Solana-based DeFi protocol Friktion has recently announced that they are suspending all front-end operations and urged their users to withdraw their funds from the platform. This decision was made due to the worsening financial crisis resulting from the FTX collapse as well as Solana’s repeated outages. The high operating cost of the platform has also been a factor in this decision.
In order to prevent new deposits and protect user funds, Friktion has disabled its front-end interface. The platform is now in “withdrawal-only mode”, allowing users to be able to withdraw their Volt deposits. The Friktion team has strongly encouraged users to withdraw their funds as the platform begins to sunset.
Before the recent insolvency crisis, Friktion had achieved great success with their platform. Over $150 million in Total Value Locked (TVL) had been achieved on Solana, and the platform had recorded a massive $3 billion in trading volume.
Despite the current setback, Friktion remains committed to the Solana ecosystem and is exploring ways to continue operations. They have discussed various options such as creating a new version of Friktion as a DApp on Solana, or a potential collaboration with another service provider.
Moving forward, Friktion is committed to providing the best possible user experience and will continue to inform users of any updates or changes. They hope to eventually resume full operations and continue to serve their users.