Sui ecosystem lending protocol AlphaFi to shut down, now in maintenance mode.

BlockBeats news, September 26: Sui ecosystem lending protocol AlphaFi has announced an orderly shutdown. It has now entered maintenance mode, with withdrawals remaining open, but no new deposits or borrowings are being accepted. Some borrowing positions in AlphaLend collateralized with ALPHA were severely undercollateralized, resulting in bad debt for the protocol; after the Sui Foundation security team discovered this, they worked with the project team to address it. The bad debt has now been fully covered, the protocol remains solvent, and user funds are safe.

As part of the shutdown arrangement, users should close positions and withdraw assets. Slush Strategies users can now withdraw funds directly from Slush Wallet, the WAL vault lock-up period has been canceled, and withdrawals from SUI, WAL, DEEP, and USDC strategies can be received instantly; the ALPHA vault has also ceased operation and its lock-up period has been canceled.