Lifinity winds down on Solana, converts ~$43M treasury to USDC for LFNTY holders
Lifinity, an early DeFi DEX on Solana, has approved a near‑unanimous governance proposal to execute a phased shutdown. The Lifinity DAO will convert roughly $42M in on‑book treasury assets plus about $1.4M in remaining development funds into USDC and distribute the proceeds pro rata to LFNTY token holders. Community estimates place per‑token recoveries at approximately $0.90–$1.10 based on treasury figures. Holders of LFNTY and veLFNTY are advised to convert to xLFNTY (or xLNFTY as referenced) prior to redemption; a redemption portal is expected to open about nine days after governance approval pending a Sec3 security audit. Unclaimed funds after 12 months will be reallocated via an airdrop to claimants. Lifinity launched in February 2022 and historically processed over $149B in volume on Solana. Traders should monitor short‑term liquidity events and sell pressure as token holders redeem distributions and any market reaction among SOL and Solana ecosystem tokens. Primary keywords: Lifinity, Solana, LFNTY, USDC, treasury conversion, protocol shutdown.
Bearish
The shutdown and treasury conversion create clear downward pressure on LFNTY in both the short and medium term. Short term: the announcement and the forthcoming redemption portal (≈9 days) will likely trigger selling as holders convert LFNTY/veLFNTY to xLFNTY and claim USDC, increasing circulating sell volume and short‑term liquidity outflows. Market makers and arbitrageurs may also supply liquidity to capture spreads, intensifying volatility. Medium term: once distributions complete, price discovery will be tied to the residual market for LFNTY vs. its redemption value; expectation of a finite, largely cashed‑out supply typically compresses upside. Broader Solana impact is likely limited but watch for temporary correlation moves in SOL and related tokens as funds exit the ecosystem or traders rebalance. The near‑unanimous governance vote and on‑book treasury backing reduce uncertainty over recovery value (supporting a floor near the estimated per‑token payout), but that floor depends on execution risk (audit timing, portal rollout) and claim uptake. Overall, expect net bearish price pressure on LFNTY until redemptions complete and liquidity normalizes.