Yeti Finance recently announced the cessation of its operations via its official X/Twitter channel. The decision was primarily driven by a significant decline in Total Value Locked (TVL) and revenue, exacerbated by the overall volatility in the cryptocurrency market.

Despite its initial aim to offer a top-notch borrowing protocol against a diverse asset portfolio on Avalanche, Yeti encountered substantial challenges over the past year. The platform faced targeted and widespread attacks amid market turbulence, prompting the team to prioritize security enhancements.

While Yeti successfully safeguarded user funds, it struggled to maintain the necessary scale to sustain its protocol amidst various unexpected occurrences and challenges, including the complexity associated with YUSD ownership.

Acknowledging the absence of simple solutions to these multifaceted challenges and the risks involved in introducing new features, the Yeti team concluded that shutting down the platform was the most prudent course of action.

As a gesture of appreciation to the community, Yeti is offering YETI holders the opportunity to redeem 90% of its current treasury, with the remaining 10% allocated to platform closure. Tokens held by team members will not be redeemed, ensuring community ownership.

Furthermore, the platform will increase interest rates on outstanding loans over the next three months, encouraging trove owners to conclude their positions and withdraw funds. The interest rates will be as follows:

- January 27, 2024: 7.5%

- February 17, 2024: 15%

- March 10, 2024: 25%

Yeti concluded the announcement by expressing gratitude to the community for its support.