Sui Ecosystem DeFi Protocol AlphaFi Announces Phased Shutdown
AlphaFi, a decentralized finance protocol on the Sui ecosystem, has announced the initiation of an orderly shutdown process. The protocol has entered maintenance mode, halting new deposits and borrowings, while existing users can still close positions and withdraw assets. Previously, certain loan positions collateralized with ALPHA in AlphaLend became severely undercollateralized, resulting in bad debt for the protocol. The associated bad debt has now been fully covered, restoring the protocol's solvency and ensuring the safety of user funds. AlphaFi will continue to cooperate with the Sui Foundation's investigation to recover outstanding debts, and will formally exit the Sui ecosystem once the final user completes their withdrawal.
