Sequoia-backed DeFi app Flint discontinues flagship yield service: Report

In its yield offering, Flint promised users a fixed return on their deposits of Ethereum, Bitcoin or several of its listed options.

Decentralised Finance (DeFi) startup Flint, which is backed by investors like Sequoia Capital and Coinbase, has decided to discontinue its flagship yield offering service amid regulatory uncertainty, YourStory reported on January 27 citing an internal mail.

"Today we are announcing the regrettable but necessary decision that Flint will be phasing out its services due to regulatory clarity around crypto deposit-taking companies like ours," the company said in the email to users, the report stated.

The development comes after the DeFi startup had in November last year informed that it has "moved out" its funds from crypto exchange FTX, which recently became bankrupt. The saga that shook the crypto world last year began with FTX filing for US bankruptcy court protection from creditors and founder Sam Bankman-Fried resigning as chief executive in the industry's highest-profile collapse.

Meanwhile, in its yield offering, Flint promises users a fixed return on their deposits of Ethereum, Bitcoin or several of its listed options. Users on average deposited $3,100 into the app, as per the company's website.

"Since our inception, we have made significant efforts to do things the right way, and help grow our users' wealth in a safe and sound manner. Our prudent risk management practices also ensured we remained unscathed during the fall down of some of the largest names in crypto recently. However, due to increased regulatory uncertainty with our offering, we have decided to discontinue our offering," the Bengaluru-based startup said, as per the YourStory report.

Flint, founded in 2021 by Akshit Bordia and Anshu Agrawal, allows its users to earn up to 13 percent a year on their deposited funds. It had earlier said that it doesn’t expose users to volatile crypto assets like Bitcoin or Ethereum. It only deals with stable cryptocurrencies like USDT and USDC that are free from fluctuations.