Ebisu, a CDP stablecoin protocol, said it is shutting down and asked users to close any remaining Troves, withdraw Stability Pool deposits, and remove ebUSD liquidity from DEXs. The protocol has already paused ebUSD minting, and its front end will go offline in three months, on Oct. 30.
Team says earlier attempts did not solve the core constraint
In its statement, Ebisu said it had previously tried several approaches. Those included replacing the Stability Pool with instant liquidations, supporting multichain issuance of ebUSD, abstracting the protocol through looping vaults and one-click leverage, and exploring acquisition opportunities.
Even so, the team said those efforts failed to address what it described as the central bottleneck for CDP-style systems: creating enough liquidity and sustained demand for a stablecoin to support a larger-scale credit market.
No EBISU token and no airdrop
Ebisu also said it will not launch an EBISU token. It added that there will be no airdrop for xEBISU or BOLD holders who took part in the Liquity v2 fork mining plan.
According to the team, xEBISU carries no monetary value and cannot be redeemed for cash, equity, tokens, or any other kind of entitlement. Ebisu said only tokens capable of sustainably accumulating real economic value should exist, and that after the shutdown there is no responsible path to issuing one.
Audits, operating record, and licensing option
The team also said the protocol had completed two audits and had operated for more than a year under a custom risk framework built by Anthias Labs, without any security incidents.
Ebisu said teams interested in licensing or building on top of its technology stack can contact the project.
Project background
Ebisu had previously raised $1.2 million. The protocol is based on a Liquity V2 fork, supports additional collateral assets and adjustable risk parameters, and was built for the stablecoin credit market across the Ethereum and Plasma ecosystems.