DeFi lending protocol Seamless Protocol announces shutdown; users must withdraw assets by June 30

DeepFlowTech · 2026-04-08T00:30:10+00:00

Seamless Protocol announces that it will shut down on June 30, 2026. Its DeFi lending protocol failed to find a suitable product-market fit due to insufficient market liquidity and diminished returns. Users need to withdraw their assets before the shutdown, and the team will propose a DAO asset distribution plan.

DeepFlowTech

2026-04-08 00:30:10

Abstract generation in progress

Deep Tide TechFlow message, on April 08, according to the official announcement from Seamless Protocol, Seamless Protocol— a DeFi lending and borrowing protocol deployed on the Base chain that has been operating for more than two and a half years—announced that it will officially shut down. The protocol UI will be taken offline on June 30, 2026; at that time, team support will also be terminated. Users must withdraw all assets via the UI before this date; if they miss the deadline, they will need to manually interact with the contracts. The operation is complex and there is no technical support.

The team said the core reason for the shutdown is that Leverage Tokens failed to find a product-market fit. The DeFi lending market suffers from structural liquidity shortages, which prevents the product from scaling; coupled with borrowing interest rate fluctuations eroding returns, the protocol also lacks a sustainable revenue pathway. The team also pointed out that DeFi market trends are shifting toward actively managed treasuries, and there is a fundamental disagreement with the protocol’s non-custodial, fully automated product positioning. In addition, the team will submit a governance proposal to allocate the remaining assets in the DAO treasury to SEAM token holders.

SEAM-4,86%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.