Ebisu Finance announces gradual protocol shutdown, ebUSD minting has been suspended

ChianCatcher news: Stablecoin credit protocol Ebisu Finance announced today that it has decided to gradually shut down the project. Users are required to promptly close remaining Troves, withdraw Stability Pool deposits, and remove ebUSD DEX liquidity. ebUSD minting has been suspended, and the frontend will be deprecated in three months, on October 30.

This protocol is a fork of Liquity V2, supporting new collateral types and adjustable risk parameters. It has been operating for over a year and has undergone two audits. Ebisu aimed to provide fixed-rate, open-term credit through ebUSD, with collateral including blue-chip yield assets such as LRTs. However, the team was unable to scale ebUSD liquidity enough to support a meaningful lending volume.

The project explored multiple solutions, including liquidity optimization, multi-chain expansion, structured products, and acquisition opportunities, but none addressed the core bottleneck of CDP protocols: stablecoin liquidity and sustainable demand. The team stated there are no plans to launch or airdrop an EBISU token, thanked supporters, and welcomed other teams to contact them for licensing their technology stack.