Porter Finance, an Ethereum-based DeFi credit portal, announced it had shut down its bond trading platforms. DeFi brokerage firm Porter Finance cited a lack in lending demand from DeFi ecosystem to explain the closure of its bond issuance platform.
Porter Finance founder Jordan Meyer confirmed that the binary options broker will be closing down its bond issuance platform. On Tuesday, the executive stated that “Looking ahead, we aren’t confident there will be large lending demand for fixed income DeFi Products like those offered through Porter Finance.”
Meyer noted that Porter Finance was influenced by the low rates available in traditional finance, and “lackof institutional fixed income deFi adoption over 12 months”, as reasons for closing its bond issuance program.
Meyer said that the platform was designed to avoid legal risks. “We are not willing to accept the legal risk associated bond offerings.” We are reevaluating our bond issuance platform in order to find better opportunities.
Porter Finance called itself the first credit marketplace for decentralized autonomous organizations. It allowed DAOs, in return for yields to their users, to issue bonds.
Meyer said the announcement would not affect the obligations Ribbon DAO – a decentralized autonomous organization (DAO) that Porter uses to issue its bond – has to its lenders.
Ribbon DAO’s obligation towards its lenders is not affected by the platform closing. Meyer stated that Ribbon DAO remains bound by its promise of repayment.
Porter Finance was founded in 2021. The company raised $5M in a seed round from ParaFi Capital and Dragonfly Capital. Investors included Buckley Ventures (Robert Leshner), Tyler Ward, Joey Santoro, Joey Santoro, Sam Kazemian, and Tyler Ward.
Porter Finance made the move when equity and crypto markets were experiencing extreme difficulties triggered by recession fears.