Solana DeFi Project Step Finance to Wind Down Weeks After $29M Hack

Solana-based DeFi projects Step Finance, SolanaFloor and Remora Markets will be winding down operations, according to a Tuesday tweet by Step.

“Following the hack at the end of January we explored every possible path forward, including financing and acquisition opportunities. Unfortunately, we were unable to secure a viable outcome and have made the difficult decision to end all operations effective immediately,” the project said.

“We are working on a buyback for STEP holders based on a snapshot prior to the incident, and a redemption process for Remora rToken holders. Remora tokens remain backed 1:1. We are deeply grateful to our community for the support over the years and are confident that this is the best outcome given the circumstances. We want to thank our millions of customers over the years for joining us on this journey.”

What is Step Finance?

Founded in 2021, Step Finance is a Solana-based decentralized finance portfolio manager. The project later expanded to launch SolanaFloor, a news outlet focused on the Solana ecosystem, and Remora Markets, a tokenized stock marketplace.

At the end of January, the project’s treasury wallets were breached, with 261,854 SOL, worth approximately $28.9 million at the time, withdrawn after stake authorization was transferred to another wallet, according to blockchain security firm CertiK. The native token STEP lost nearly 96% of its value following the incident and is down 36% over the last 24 hours to $0.0005859, according to CoinGecko data.

Co-founder George Harrap described the shutdown as “a difficult day,” adding that his immediate priority is “finding good roles for our excellent team.” He said some parties have expressed interest in acquiring parts of the businesses but noted the company is operating under significant time pressure.

DeFi casualties mount

Step’s closure is not an isolated case. Decentralized finance lending platform ZeroLend said last week it plans to shut down after three years of operations, citing mounting operational challenges and an unsustainable business model. Founder Ryker attributed the decision to declining on-chain activity, infrastructure challenges and rising security risks.

ZeroLend’s native token, ZERO, fell 45% over the 24 hours following the announcement to $0.06696, according to CoinGecko. The token has dropped 91% over the previous month and 99.4% over the previous year.

Other crypto projects have also wound down over the past year. Last May, yield farm Alpaca Finance shuttered after operating at a loss for more than two years. Derivatives platform Polynomial said it would close “instead of launching a token for a dying product.”

Industry observers say the wave of closures reflects broader structural challenges in crypto markets. Following the ZeroLend shutdown, Deigo Martin, CEO of Yellow Capital, told Decrypt that as adoption grows, companies with tokens that lack clear utility are increasingly struggling to survive. “The key challenge is fragmented liquidity. Crypto trading and custody is fragmented across many exchanges, custodians and blockchains,” he said.

“This leads to unstable pricing and short-term liquidity gaps when demand increases… For consumers, this makes crypto a less predictable and appealing option to pay with.”