Sui Ecosystem DeFi Protocol AlphaFi announced a gradual cessation of operations

The Sui ecosystem decentralized finance protocol AlphaFi announced the initiation of an orderly shutdown procedure. It has now entered maintenance mode, halting new deposits and loans. Existing users can still close positions and withdraw assets.

Previously, some loan positions in AlphaLend that used ALPHA as collateral experienced severe under-collateralization, leading to bad debts for the protocol. Currently, the related bad debts have been fully covered, and the protocol is solvent, ensuring user fund safety. AlphaFi will continue to cooperate with the Sui Foundation to investigate and recover related debts, and will officially exit the Sui ecosystem after the last user completes their withdrawal.