Crypto finance platform Coinloan has announced it has begun the process of delisting a range of once-popular DeFi tokens due in part to insufficient demand.
Estonia based Coinloan says the delisting of the DeFi assets will start immediately and will be completed by June the 5th. It blames low customer demand and “other business considerations” for the decision to delist the tokens.
The value of overall daily transactional volume for DeFi assets such as UNISWAP and SUSHISWAP has fallen sharply since peaking in May 2021. At that time UNI daily transactional value was averaging around $1 billion a day, with SUSHI also hitting similar numbers. A year later, both protocols daily transactional value has fallen by around 80%.
All interest accruals on the affected tokens have ceased immediately. Coinloan says by June 5th all customers with a UNI, COMP, SUSHI, YFI or AVX balance in their Coinloan account will need to have moved their assets off the platform, or swapped them for other supported tokens.
While Coanloan does not go into detail about the exact nature of the ‘other business considerations’ behind the decision to delist, there remains considerable uncertainty in the market in relation to the stability of many DeFi assets, particularly in the regard to smart contract hacks and manipulation.
The organisations or partner entities associated with YFI, UNI and SUSHI have all been hit with hacks or code exploits in recent years, and the market overall remains jittery in the wake of the total collapse of LUNA and its UST stablecoin.
The delisting of UNI, COMP, SUSHI, YFI and AVX represents a reduction of around 15% of total assets available on the Coinloan platform, however, they have always offered very low interest rates for deposits at 1% each. By comparison, the highest interest rate for UNI deposits offered by platforms tracked by Mooloo is currently 7% from YouHodler.
Most holders prefer to lock or ‘stake’ their tokens in the various platform’s associated staking pools. For example;
- The average return for UNI liquidity stakers is 0.3% APR (across UNI’s 5 largest pools on Uniswap V3).
- ~54% of UNI’s total supply is locked across the UNI community fund, treasury vesters, time-locked addresses, and UNI’s four largest rewards trading pools.
- Sushshiswap features the Sushibar program. For every swap on the exchange on every chain, 0.05% of the swap fees are distributed as SUSHI proportional to your share of the SushiBar. The reported APY for locking SUSHI in Sushibar is ~26.41%.
- ~43% of Sushi’s total supply is locked into Sushibar, a treasury multsig, and the Sushiswap masterchef LP staking pool.
While no other crypto finance platforms have announced similar broad delistings, it is likely more will in due course, as the business case for listing many DeFi tokens becomes less and less compelling and the security issues related to DeFi, in general, remain largely unresolved.
