DeFi lending protocol Seamless Protocol announces shutdown

Seamless Protocol has officially announced the closure of its Base chain DeFi lending protocol after more than two and a half years of operation. Users are required to withdraw their assets via the protocol UI before June 30, 2026 (UTC+8). After the deadline, withdrawals will need to be made manually through contract interaction and there will be no technical support provided. The team stated reasons for the shutdown include the leveraged token failing to find a market fit, insufficient liquidity in the lending market, and yield erosion due to interest rate volatility. They also pointed out that the DeFi market is now trending toward actively managed vaults, which diverges from their product positioning. The team will submit a governance proposal to allocate the remaining DAO treasury assets to SEAM token holders.