Categories: DeFi

GRO looks at ceasing official activity amid sector-wide slump

GRO looks at ceasing official activity amid sector-wide slump

GRO has decided to shut down all of its present business-related activities following the slow downfall of the DeFi arena. Their plan is to return the remaining treasury to the GRO token owners, who can then have the option of transferring it to a redemption contract. In the case of the DeFi arena, user traction seems to be declining by the day, with GRO being a protocol that reached the figure of $70 million in total value locked (TVL) towards the end of 2021.

There were three options for GRO to consider regarding the closure. The first was to restrict all official activities; the second was for a two-person team to remain involved in development work; and the third was to completely disregard the proposal. It was decided that a USDC allocation of $180,000 would be made over the course of the next three months. In order to finalize all operations, the Groda Pod development team needed these requirements so that they could submit the reimbursement contract. Supporters of the closure cited a challenging market, the GRO protocol’s ineffectiveness, and the high-profile departures of competing companies as arguments.

The project was established in 2020 by previous employees from Goldman Sachs, Morgan Stanley, Spotify, and Revolut. The declaration was made in 2021 regarding an increase of $7.1 million in the form of funds like 3AC, Framework, and Nascent. At the height of the protocol towards the end of 2021, GRO had reached more than the $68 million mark in the form of stables that were deposited into its yield collection as well as tranching contracts.

The voting exercise that was carried out happened during a disturbed phase for DeFi protocols. The industry’s collective TVL has decreased from a height of $1.05 billion in April to a low amounting to simply $80 billion currently. This decline has taken place at a time when there is seemingly less traction throughout Ethereum.

The number of users is usually slow in the case of sought-after DeFi protocols. Uniswap has been witnessing a downfall in the user count, and Aave has dropped by 40%.

David Cox: David is a finance graduate and crypto enthusiast. He projects his expertise in subjects like crypto and Blockchain while writing for CryptoNewsZ. Being from Finance background, he efficiently writes Price Analysis. Apart from writing, he actively nurtures hobbies like sports and movies.