BlockBeats report, on April 8, according to official announcements, the Base ecosystem lending protocol Seamless Protocol has declared it will gradually shut down operations. The Seamless interface will be taken offline on June 30, 2026, and users must withdraw all assets, redeem leveraged tokens, and unstake SEAM before this date. Vaults on Morpho will also be liquidated in an orderly manner, and any remaining DAO treasury assets will be distributed to SEAM holders according to a governance proposal.
The reasons for the closure include structural challenges in the DeFi lending market, liquidity constraints on leveraged tokens, and a market shift toward actively managed vaults rather than permissionless tokenized products. Although the protocol mechanisms functioned as designed, market conditions failed to support large-scale adoption, and there was no clear path to sustainable returns for ongoing development.