According to TechFlow on June 11, NFTfi, a peer-to-peer lending protocol for NFTs, has announced that it will gradually wind down over the coming months. The team said the protocol’s front-end interface is scheduled to stop operating by the end of August 2026, marking a planned shutdown process rather than an immediate halt of all on-chain activity.
Operating costs outpace available revenue
The NFTfi team said the NFT market has shrunk to a size that can no longer support the protocol’s operating costs. It added that potential revenue is no longer sufficient to cover operating expenses, and that the protocol cannot continue subsidizing operations under uncertainty. On that basis, the team decided to proceed with the shutdown.
Under the shutdown plan, NFTfi is no longer accepting new loans. Existing loans may be refinanced before July 31, with each refinancing period capped at a maximum of 30 days. Borrowers may repay at any time before August 31, 2026. After the front end goes offline, the smart contracts will remain deployed on-chain and continue to operate autonomously, allowing users to interact directly with the contracts to repay loans and claim collateral.