The recent decision by Yeti Finance to shut down its operations was echoed through its X/Twitter channel. The main driver behind this conclusion stemmed from a notable drop in Total Value Locked (TVL) and revenue. Acknowledging the unstable nature of the cryptocurrency market, Yeti Finance faced the brunt of these challenges, leading to the implementation of cost-saving strategies as a response.

Since its inception, Yeti Finance had its sights set on delivering top-notch borrowing services against a diversified asset portfolio on Avalanche. This vision was upheld by the team, who held onto their tokens to uphold security measures. Despite this unwavering commitment, the platform grappled with a series of hurdles in the past year, with targeted attacks alongside broader market volatilities taking a toll on its sustainability. In the wake of these obstacles, the team made the strategic decision to prioritize bolstering security protocols above all else.

While the team managed to shield user funds amidst the turbulent crypto landscape, the network struggled to retain the necessary scale for its protocol to persevere. Complicating matters further were unforeseen events and obstacles such as ownership nuances related to YUSD, further adding layers of complexity to the situation. Faced with these intricate challenges and the arduous task of introducing new features amidst the turmoil, the Yeti team pragmatically determined that winding down operations was the most judicious and appropriate step forward.

In light of these deliberations, Yeti is shining a beacon of appreciation toward its community by extending the opportunity for YETI holders to redeem 90% of the present treasury, with the remaining 10% earmarked for platform closure. Notably, team members will not be redeeming their tokens, underscoring the commitment to transferring all assets back to the community's possession. Furthermore, toward fostering a smooth transition, the platform plans to incrementally heighten interest rates on outstanding loans over the ensuing three months, incentivizing trove owners to withdraw their funds steadily:

- January 27, 2024 – 7.5%
- February 17, 2024 – 15%
- March 10, 2024 – 25%

In concluding the announcement, Yeti expressed heartfelt gratitude to the community for steadfastly supporting its journey.