- Parallel Finance shuts down with $800,000 NFTs trapped in vaults.
- Users face challenges due to protocol’s interface deprecation.
- Community seeks solutions amid frustrations over high recovery fees.
Parallel Finance, an NFT lending protocol, has shut down, leaving $800,000 worth of NFTs stuck in its smart contract vaults, sparking community frustration and calls for withdrawal solutions.
The shutdown affects NFT investors relying on Parallel Finance, highlighting risks in DeFi protocols’ user assets management, with significant community concern over asset recovery measures and protocol reliability.
Impact of Parallel Finance Shutdown
Parallel Finance, an NFT lending protocol, is shutting down, locking over $800,000 worth of NFTs in its smart contract vaults. The platform will officially close on August 1, 2025, as announced by its CEO, Yubo Ruan.
Main figures involved include Yubo Ruan, CEO of Parallel Finance, and 0xQuit, who offered a workaround for users. 0xQuit, associated with Yuga Labs, released a tutorial for NFT withdrawal using Etherscan amid the front-end’s deprecation.
The shutdown affects many holders of Ethereum-based NFTs, creating significant community frustration. Users were charged $500 fees for asset recovery assistance, exacerbating displeasure among those impacted by the closure.
The financial implications see users unable to access $800,000 in valuable NFTs. The liquidation of remaining NFTs aims to provide lender liquidity, with withdrawals completed and Parallel Finance’s interface discontinued.
Community reactions highlight concerns over protocol failures, reliance on third-party solutions, and lack of direct support from Parallel Finance. This is amid a decline in TVL to zero after the interface deprecation. “Please follow 0xQuit’s tutorial to withdraw assets, as the platform will officially shut down on August 1, 2025. Otherwise, all remaining NFTs will be liquidated to provide liquidity to lenders.” — Yubo Ruan, CEO, Parallel Finance.
Similar historical events where protocols have shut down—such as C.R.E.A.M. Finance—show user assets stranded within smart contracts. The community demands greater transparency and improved mechanisms for asset recovery during such closures.
| Disclaimer: The content on The CCPress is provided for informational purposes only and should not be considered financial or investment advice. Cryptocurrency investments carry inherent risks. Please consult a qualified financial advisor before making any investment decisions. |