The DeFi realm has recently encountered a shake-up, a well-known decentralized lending protocol Yield Protocol has decided to “wind down” its operations by the end of 2023, subject to a lack of sustainable business demand and rising global regulatory pressures. The closure will complete with the maturing of its December 2023 series on December 29, 2023. It’s worth noting that unfavorable crypto regulations in the United States, Europe and the United Kingdom were among the foremost challenges that steered Yield Protocol towards shutdown.
Accompanying this wind-down, the company declared the cancellation of the launch of their March 2024 fixed-rate series, stating an unsatisfactory demand for fixed-rate borrowing on Yield Protocol. The protocol’s liquidity providers for the March-September strategies won’t accrue any further fees, and all borrowing and lending activities are to end by December 31st.
Meanwhile, bolstering its economy through the cutting-edge of the crypto mining space, El Salvador recently launched a renewable energy Bitcoin mining operation called Volcano Energy. The project, partnering with Luxor Technology, aims to utilize renewable energy sources for future Bitcoin mining undertakings. The venture promises to contribute 23% of its net income from mining operations to the Salvadoran government, reinforcing El Salvador’s status as a Bitcoin-adopting nation.
The project is currently working on constructing a 241-MW renewable energy park in Metapán with both solar and wind power. However, it aspires to eventually tap into abundant geothermal energy within the country. El Salvador’s push towards cryptocurrency-powered growth seems promising, yet it is too soon to anticipate the results.
Indeed, such contrasting news from the crypto world showcases the dynamic nature of the industry. Yield Protocol’s closure signifies the challenge of fluctuating market demand and the tightening grip of global crypto regulations. Simultaneously, breakthrough initiatives like El Salvador’s Volcano Energy are indicative of the potential transformational impacts that blockchain can have across national economies and energy use. Time will tell whether the industry’s pros will eventually outweigh its cons, or vice versa.
Source: Cointelegraph
