Over the weekend, some well-known DeFi protocol devs announced that they have decided to quit their work on the DeFi protocols they have been working on.
These are Anton Nell and Andre Cronje.
Andre and I have decided that we are closing the chapter of contibuting to the defi/crypto space.
There are around ~25 apps and services that we are terminating on 03 April 2022.
— Anton Nell (@AntonNellCrypto) March 6, 2022
Devs leave DeFi, consequences
The two stated that there are about 25 apps and services that will end on 03 April 2022, namely yearn.fi, keep3r.network, multichain.xyz, chainlist.org, solidly.exchange and bribe.crv.finance.
Nell, however, also mentions their respective replacements, namely yearn.finance, thekeep3r.network, and multichain.org.
He then commented by saying:
“Unlike previous “building in defi sucks” rage quits, this is not a knee jerk reaction to the hate received from releasing a project, but a decision that has been coming for a while now.
Thanks you to everyone that supported us over the past few years”.
The DeFi world took these statements badly yesterday, with Yearn Finance (YFI) losing 10%, Multichain (MULTI) 17%, Keep3rV1 (KP3R) 20% and Solidex (SEX) as much as 65%.
Today’s day on the crypto markets is bearish, so there were no major recoveries.
Losses of DeFi protocols
YFI is currently down 12% from a week ago, 26% from a month ago, and 47% from twelve months ago.
MULTI is at -7% compared to seven days ago, while KP3R is at -33% (but still at +45% compared to a year ago).
SEX is down 87% from a week ago, and SOLID (Solidly) is down 86%.
Other DeFi tokens are also losing compared to seven days ago, such as Uniswap (UNI) -15%, Aave (AAVE) -12%, and Convex Finance (CVX) -10%.
However, there are also a few rare cases of DeFi tokens up from seven days ago, such as Osmosis (OSMO) +5%, THORChain (RUNE) +30%, and most notably Terra (LUNA) which is up 62% in the last two weeks.
For several weeks now, the DeFi world has been shaken by big movements, almost always in a negative direction. It is possible that too many new DeFi projects have emerged in the past two years, and that many of them are beginning to become unsustainable.
The case of ICOs
Something like this had already happened between 2017 and 2018 with ICOs, with the vast majority of projects turning out not to be good or even bad, although some survived.
At this moment, it seems that a new phase of “cleansing” in the DeFi sphere has been triggered, similar in some ways to that of 2018 ICOs, from which a relatively small number of successful projects are likely to emerge.