Ebisu Finance, a stablecoin lending protocol, said on Tuesday that it will gradually shut down the project. Users have been asked to close any remaining Troves and withdraw deposits from the Stability Pool as well as liquidity from the ebUSD DEX as soon as possible. ebUSD minting has been paused, and the front end will be deprecated in three months, on Oct. 30.
Shutdown process begins
According to the announcement, users should now wind down their remaining positions by closing Troves, pulling deposits from the Stability Pool and removing liquidity tied to the ebUSD DEX. The team said minting for ebUSD is no longer available, with the protocol front end scheduled to be retired on Oct. 30.
Protocol background
Ebisu Finance is a fork of Liquity V2 and supports new collateral assets along with adjustable risk parameters. The protocol said it has operated for more than a year and has undergone two audits.
The project was designed to provide fixed-rate, open-term credit through ebUSD. Its collateral base included blue-chip yield-bearing assets such as LRTs.
Why the project is closing
The team said it was unable to expand ebUSD liquidity to a level that could support meaningful borrowing scale. In an effort to address that problem, it explored several paths, including liquidity optimization, multichain expansion, structured products and acquisition opportunities.
Those efforts did not resolve what the team described as the core bottleneck facing CDP protocols: stablecoin liquidity and sustainable demand.
No token launch or airdrop
Ebisu Finance also said there are no plans for an EBISU token launch or an airdrop. The team thanked supporters and said it is open to hearing from other teams interested in licensing its technology stack.