Sui ecosystem lending protocol AlphaFi will shut down and has entered maintenance mode.

Sui ecosystem lending protocol AlphaFi announced it will undergo an orderly shutdown and has entered maintenance mode. Withdrawals remain open, but the protocol will no longer accept new deposits or borrowings. Some ALPHA-collateralized loan positions on AlphaLend were severely undercollateralized, resulting in bad debts for the protocol. After the Sui Foundation Security Team identified the issue, it collaborated with the project team to address it. The bad debts have now been fully covered, the protocol remains solvent, and user funds are secure. As part of the shutdown arrangements, users should close their positions and withdraw their assets. Slush Strategies users can now directly withdraw funds from Slush Wallet: the lock-up period for the WAL vault has been lifted, withdrawals for SUI, WAL, DEEP, and USDC strategies are instant, and the ALPHA vault has also been shut down with its lock-up period canceled.