DeFi protocol Porter Finance shuts down bond issuance platform after just one month

cointelegraph.com:

Porter Finance, a decentralized finance, or DeFi, protocol based on the Ethereum (ETH) blockchain, announced Tuesday that it was shutting down its bond issuance platform. In explaining the discussion, Porter Finance said:

Porter Finance is shutting down its bond issuance platform.Please see the medium article below:https://t.co/4dPNEvqXrr

Just last month, Porter Finance unveiled the first-of-a-kind service in partnership with Ribbon DAO to issue 3,103,224 convertible bonds redeemable for 1 USDC with a maturity date of Dec. 4, 2022. At the time, each bond was issued at a discounted price of 0.9667 USDC per bond with a yield to maturity of 7% after accounting for interest. 

In addition, each bond is secured by 16.112 Ribbon Finance tokens ($4.78 at the time of June announcement) and convertible for 1.111 RBN. It appears significant over-collateralization was required for the issuance of the bond. The instrument also had a significantly higher borrowing cost than money-market securities of the same maturity.

In light of the recent implosion of notable DeFi lenders such as Celsius, investors have taken a risk-averse approach to borrow and lending on decentralized protocols. Total value locked in such projects tracked by DeFi Llama has plunged nearly 70% since the beginning of the year. The Portal Finance offering, characterized by its underlying smart contract, will remain active until all Ribbon DAO lenders redeem or convert their bonds.