DeFi protocol GRO considers shutdown amid sector-wide pullback

A yield aggregator that formerly boasted $70m in TVL is voting to close down operations

article-image

William Barton/Shutterstock modified by Blockworks

share

As user activity and volumes across the DeFi space sink, a protocol that peaked at $70 million in total value locked (TVL) in late 2021 voted to “unwind the Protocol and the DAO” on Tuesday. 

In a vote passed early Tuesday morning, the GRO DAO voted to effectively cease ongoing operations. It will redeem the rest of its treasury directly to GRO token holders who deposit into a redemption contract. 

Three options were presented: unwinding the operations, supporting a two-person team for continued development, or dismissing the proposal entirely. The decision was made to allocate $180,000 (in USDC) for a three-month period, allowing the “Groda Pod” development team to release the reimbursement contract and cease activities.

The proposal cited “difficult market, underperformance of the Gro protocol, and key departures” as extenuating circumstances leading to the decision to put an existential vote before the DAO. 

The project was founded in 2020 by former employees of Goldman Sachs, Spotify, Morgan Stanley, and Revolut. In 2021, they announced a $7.1 million raise that included funds such as Framework, 3AC, and Nascent. At the protocol’s peak in October 2021, it boasted over $68 million in stables deposited into its yield aggregation and risk tranching contracts. 

The vote to wind down comes amid a rocky period for DeFi protocols. The sector’s aggregate TVL has drifted from a high of $1.05 billion in April to just $80 billion as of today. The pullback comes amid a broader downturn in user activity across Ethereum

User numbers for popular DeFi protocols are especially languid. Uniswap weekly volume is set to print new 2023 lows, and monthly users for popular lending protocols such as Aave have slumped by 40% from yearly highs.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research report - cover graphics (1).jpg

Research

In this report, we dive into crypto private market data to gather insights on where the future of the industry is headed. Despite a notable downturn in private raises, capital continues to infuse promising projects that aim to transform payments, banking, consumer experiences, community, and more, with 2023 being the fourth-largest year for crypto venture capital.

article-image

BUZZ holds shares of Coinbase, Robinhood and MicroStrategy

article-image

Opinion: Even though I didn’t pay for my “Diamond Hands” burger with BTC, don’t let that fool you into thinking that crypto’s development is futile

article-image

The results mark “a major positive inflection point,” one analyst says, as the exchange carries net income momentum into a crypto rally

article-image

While the slate of 10 US spot bitcoin funds have tallied $4.6 billion of net inflows thus far, half of the field is lagging the leaders

article-image

Trading volumes totalled $154 billion in Q4, including $125 billion in institutional volume

article-image

DeFi on Bitcoin is all the rage right now and Stacks is positioned to benefit