DeFi protocol Altura announced Sunday that it will begin an orderly wind-down of its stablecoin yield vault following substantial withdrawal requests over the weekend.
In a post on social media platform X, Altura CEO Ranveer Arora said the platform has processed more than 8.5 million USDT in instant redemptions over the 24 hours leading up to his post, amid what he described as an "unprecedented level" of withdrawal requests.
"Given the sustained withdrawal demand and current market sentiment, we have made the difficult decision to begin an orderly wind-down of the Altura vault," Arora wrote. "Our priority remains the protection of user capital and ensuring all redemptions are completed in a fair, transparent, and efficient manner."
The vault, which had reached a peak total value locked of $39 million on HyperEVM, allocates stablecoin deposits across multiple strategies, including funding-rate arbitrage, market making, and real-world asset (RWA) positions.
According to Arora, Altura has notified all counterparties and partners of the decision and has begun unwinding positions, including allocations held on exchanges, in private credit, and in real-world asset strategies. The CEO added that some positions may take longer to be fully redeemed.
Meanwhile, Arora indicated in his announcement that Altura was affected by unverified market speculation.
"I am deeply disappointed by how quickly misinformation and speculation can spread within the industry," Arora said. "Altura has always operated with transparency and integrity, and it is unfortunate to see unfounded narratives contribute to market fear and withdrawal pressure."
While Arora's personal post did not explicitly name the incident, Altura's official account had published a statement earlier Sunday regarding the depegging of Main Street's yield-bearing msUSD.
Main Street's stablecoin crashed over 70% on Saturday, after its proof-of-solvency provider, Accountable, terminated its service agreement with the issuer. Accountable said in its announcement that Main Street was unable to meet its verification standards. Accountable also provides proof-of-solvency services for Altura.
Although Altura explicitly stated it had no direct exposure to Main Street or its strategies, the depegging apparently triggered contagion fears across similar protocols.
"Our HyperEVM lending vault (Alpha USDT Prime), the associated USDT/AVLT market, and borrowers utilizing our Ethereum vault remain unaffected by this event," Altura said in an update prior to Arora's announcement of the winddown.
The Block has reached out to Altura for further comment on the situation.
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