Fuji Finance is sunsetting operations due to dwindling funds

Decentralized finance cross-chain money market aggregator Fuji Finance said the protocol was unable to find the market for its product, while also experiencing limited finance.

In a recent Medium blog post, the company said that it failed to find “product-market fit,” a situation which was made more difficult amid the current crypto bear market.

Fuji Finance’s attempts to raise additional funds for further development proved futile, and its team has been trying to attract more investors since last February, according to the blog post, but the effort seemed unsuccessful, causing the firm to decide to pull the plug amid its depleting treasury. 

“Since February of this year, the Fuji team has been fundraising to continue development on the protocol and build out the future of cross-chain DeFi operations. We were unable to find product market fit. With our treasury dwindling, we decided that we needed to begin to close down the company and end operations with no end in sight for the fundraise.”

Fuji Finance in a Medium blog post

Fuji initially launched the first aggregator service on Ethereum, which was also available on other chains including Fantom, Polygon, and Arbitrum. The protocol later publicly unveiled its V2 called Himalaya, a cross-chain money market aggregator, allowing users to borrow, deposit, repay, and withdraw their positions across any chain. Himalaya was deployed on Arbitrum, Ethereum, Optimism, and Gnosis Chain.

Meanwhile, Fuji advised users to close their positions and withdraw their funds as soon as possible, stating that the withdrawal window via the protocol’s user interface (UI) will be open until Dec. 31. Users who do not utilize this channel by the said date will have to interact with the platform’s smart contract protocol.

Apart from Fuji Finance, other DeFi lending protocols such as Algofi, Everlend, and SpiritSwap have shuttered their services in recent times. 

Follow Us on Google News