After $150B Lifetime Trades, Lifinity Winds Down Amid DeFi Shakeup

2 hours ago

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Why did Lifinity decide to shut down after reaching the $150 billion milestone?

How is Lifinity returning $43 million to its token holders?

What does Lifinity's shutdown reveal about the current state of DeFi?

After $150B Lifetime Trades, Lifinity Winds Down Amid DeFi Shakeup — Image source: Unblock Media

Lifinity, a leading decentralized exchange (DEX) on Solana, announces its closure following strong community approval.
The protocol plans to distribute $43.4 million in treasury funds to token holders in a carefully structured wind-down process.

On December 18, 2025, Cryptopolitan reported that Lifinity, a significant decentralized exchange operating on the Solana blockchain since 2022, confirmed its closure following a community governance vote. The vote was held on December 10 and received overwhelming support for the decision. The closure comes amid increasing competition in Solana’s decentralized finance (DeFi) ecosystem, which has made it challenging for older platforms to maintain dominance.

Once ranked as the fifth-largest DEX on Solana, Lifinity achieved a peak weekly market share of 24% and facilitated an impressive $150 billion in total trading volume over its operational lifespan. However, the rise of newer automated market makers (AMMs) created a highly competitive environment, prompting the decision to wind down operations.

To ensure fairness, Lifinity will distribute $43.4 million in treasury funds back to its community. This distribution includes $42 million from its DAO treasury and $1.4 million from a development fund, all set to be converted into USDC. Token holders of $LFNTY are expected to receive payouts ranging between $0.90 and $1.10 per token.

The payout process is slated to begin after a security audit, which is expected to conclude within approximately nine days. Holders of $LFNTY and $veLFNTY tokens will need to convert their holdings into $xLNFTY to qualify for redemption. The protocol team emphasized their commitment to a transparent and equitable distribution process to uphold trust within their community.

As of December 19, 2025, at 15:08 UTC, Solana (SOL) trades at $125.89, reflecting a 0.63% decline in 24-hour volume. Meanwhile, USDC remains stable at $1.00, with a slight 0.04% decrease in trading volume in the same period.