Step Finance, along with related projects SolanaFloor and Remora Markets, is shutting down after a January hack drained 261,854 SOL worth approximately $29 million. The breach caused the STEP token to plummet 96%, and efforts to secure financing or an acquisition failed. The closure adds to a growing list of DeFi project failures, including ZeroLend, which also recently announced its shutdown.
Solana-based DeFi projects Step Finance, SolanaFloor, and Remora Markets are winding down all operations. “Following the hack at the end of January we explored every possible path forward, including financing and acquisition opportunities. Unfortunately, we were unable to secure a viable outcome and have made the difficult decision to end all operations effective immediately,” the project stated.
The January attack saw 261,854 SOL withdrawn after stake authorization was transferred, according to blockchain security firm CertiK. The native STEP token subsequently lost nearly 96% of its value and is down 36% over the last 24 hours to $0.0005859, according to CoinGecko data.
Step Finance co-founder George Harrap described the shutdown as a difficult day. His immediate priority is finding roles for the team while pursuing any serious acquisition interest for the businesses.
The closure follows other high-profile DeFi shutdowns, including lending platform ZeroLend. ZeroLend cited operational challenges and an unsustainable business model for its decision last week. Its ZERO token fell 45% following the announcement and has dropped 99.4% over the previous year, according to CoinGecko.
Other projects like yield farm Alpaca Finance and derivatives platform Polynomial have also shut down recently. Following the ZeroLend news, Deigo Martin, CEO of Yellow Capital, said companies with tokens lacking clear utility are increasingly struggling as adoption grows.
