According to PANews, the Solana-based stablecoin project UXD Protocol has announced plans to gradually cease operations and return unused capital to investors. The project currently holds $7.5 million in user deposits. The UXD team cited insufficient liquidity and the stablecoin model's failure to achieve product-market fit as reasons for the termination of the project, which was launched in 2021.
In a DAO forum post on Monday, the team stated, 'The model does make the stablecoin stable, but it is not exciting enough for DeFi users and does not offer sufficient advantages compared to centralized stablecoins.' They added, 'We believe that terminating the project and returning capital to investors is the best use of capital and team resources.' The closure and capital repayment process is pending a DAO vote, which is currently underway and will last for a week. The team noted that if the vote passes, the entire closure process could take up to two years due to the presence of illiquid assets in the insurance fund.