Tulip Protocol Has Paused Lending Features Until On-Chain Liquidity Stabilizes

November 15, 2022 - Around 2 mins mins to read

In the latest announcement on Twitter, Tulip Protocol said they had paused lending deposits, new leveraged positions creation, and whirlpool deposits until on-chain liquidity stabilizes.

Tulip Protocol is the first Yield aggregator running on the Solana blockchain. In particular, the lending feature is one of the three main products of Tulip. At the same time, Tulip is also known as an important partner of FTX, TULIP coin is being traded on the FTX exchange.

Facing the demise of FTX as well as concerns about the consequences that FTX has on its partners, Tulip said that it has no exposure to FTX and Alameda Research, the system is still operating completely normally.

An update on recent events: Tulip is working as normal and team is monitoring the situation and will provide updates as they arise.

Tulip has ZERO exposure to Alameda/FTX and all Tulip Strategy Vault have no allocations to Solend.
— Tulip Protocol (@TulipProtocol) November 8, 2022

Currently, Tulip Protocol has partnered with Orca to build a centralized liquidity strategy. In order for on-chain liquidity to be stable, the system has paused deposit operations, new leveraged positions creation, and whirlpool deposits. However, users can still withdraw from lending/whirlpool strategy and close leverage positions. For leveraged positions, users can still add collateral.

We have paused lending deposits, new leveraged position creation and whirlpool deposits until on-chain liquidity stabilizes/improves.

Users can still withdraw from lending/whirlpool strategy and manage/close leverage positions.
— Tulip Protocol (@TulipProtocol) November 14, 2022

This announcement is extremely timely given concerns about the impact of the FTX collapse on the exchange’s partners.

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