Ebisu, a CDP-based stablecoin protocol, said it is shutting down and will not issue an EBISU token. The team said users should close any remaining Troves, withdraw deposits from the Stability Pool, and remove ebUSD liquidity from DEXs. Minting of ebUSD has already been halted, and the Ebisu front end is scheduled to go offline in three months, on Oct. 30. The protocol said it had explored several options before deciding to wind down, including replacing the Stability Pool with instant liquidations, enabling multichain issuance for ebUSD, abstracting the protocol through looping vaults and one-click leverage, and pursuing acquisition opportunities. According to the team, none of those efforts solved what it described as the core constraint for CDP protocols: building enough liquidity and durable demand for a stablecoin to support a larger credit market. Ebisu also said there will be no airdrop for xEBISU or BOLD holders tied to the Liquity v2 fork mining plan. It added that xEBISU has no monetary value and cannot be redeemed for cash, equity, tokens, or any other form of rights.

Stablecoin lending protocol Ebisu Finance said it will begin a gradual shutdown, telling users to close any remaining Troves and withdraw funds from the Stability Pool and ebUSD DEX liquidity positions as soon as possible. The team has already paused ebUSD minting and said the protocol’s front end will be deprecated in three months, on Oct. 30. Ebisu, a Liquity V2 fork that supports new collateral types and adjustable risk parameters, said it had been live for more than a year and had completed two audits. The project was built to offer fixed-rate, open-term credit through ebUSD, using collateral that included blue-chip yield-bearing assets such as LRTs. But the team said it was unable to scale ebUSD liquidity to a level that could support meaningful borrowing activity. It also said it had explored a range of options, including liquidity optimization, multichain expansion, structured products and acquisition opportunities, without solving what it described as the core bottleneck for CDP protocols: stablecoin liquidity and sustainable demand. Ebisu added that there are no plans for an EBISU token launch or airdrop.