Strobe Finance, the only native decentralized lending protocol on XRP Ledger’s EVM Sidechain, announced that it is winding down and gave users until July 13 to repay their loans.
Users also have until July 20 to withdraw their deposits before the front-end closes permanently.
This shutdown will leave the XRPL EVM Sidechain without a functioning lending market and raise specific questions about whether the network can support retail-focused DeFi projects at all.
What happened, and what users need to know
In a post on X published late Tuesday, Straub’s team put it bluntly placed The reason they closed. According to them, although the project was launched with sufficient funding to reach the mainnet, it was unable to secure additional support through grants, angel investors or venture capital. As the Total Value Locked (TVL) decreased, the fees the protocol was earning were not enough to cover the monthly operating costs.
The team also noted that the price of XRP has fallen by about 60% from the level it was at when Strobe launched, exacerbating the funding gap. Furthermore, the XRPL EVM Sidechain, which was central to Strobe’s original design, is no longer the primary focus within the broader Ripple ecosystem.
“Throughout all of this, our team has contributed hundreds of hours, without pay, to keep Strobe running,” they wrote. “We gladly did it, but it is no longer sustainable.”
For those still using the protocol, the timeline is tight, as new deposits and loans have been disabled as of the announcement. In addition, anyone with an open loan was asked to repay it before July 13, when Stroup will begin liquidating unpaid positions to protect lenders as liquidity drains. Since standard liquidation fees will apply, the team noted that paying voluntarily was the best option.
From July 13 to July 20, the app will remain open for withdrawals only, and after July 20, users will have to interact directly with Strobe smart contracts, for which the project said it will publish a step-by-step guide, although it stressed that using the app before that date will be much simpler.
The statement read: “To make the matter clear: exit before July 13 is best, and exit before July 20 is necessary.”
A niche that no one else has filled
There has been some disappointing reactions from many community members, including cryptocurrency commentator Shane, who… books On X, Strobe was “a truly unique product within the XRP ecosystem” that brought decentralized lending to the XRPL mainnet through the EVM Sidechain.
“If innovative products that do not have competition from the local ecosystem cannot survive on XRPL in the long term, what kind of projects can?” They asked.
They also called for major changes in how the chain supports retail-focused projects.
Another commentator, the cradle rider, He said They lent money through the protocol and called its closure “really bad.”
Ripple itself has pushed XRPL in a different direction. Earlier this month, Fired The initial AI toolkit that positions XRP and its stablecoin RLUSD as tools for autonomous payment applications and machine-to-machine transactions. This institutional and developer-focused offering is a far cry from the retail lending product that Straub was trying to build.
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