According to BlockBeats, on August 20, the algorithmic stablecoin protocol UXD Protocol announced that it is gradually shutting down its business and will return unused funds to investors. The project currently has $7.5 million in user deposits.
The UXD team said that due to insufficient liquidity and the failure of its stablecoin model to succeed in the market, it decided to shut down the project. The protocol's closure and capital repayment process is pending a DAO vote, which is already underway and will last for a week.
The team said that if the vote passes, the entire shutdown process could take up to two years due to the presence of illiquid assets in the insurance fund. This window provides investors with enough time to convert these illiquid assets into USDC and exit the protocol.
