PANews reported on April 8th that, according to an official announcement, Seamless Protocol, the DeFi lending protocol within the Base ecosystem, will be gradually shutting down after two and a half years of operation. The UI will be taken offline on June 30, 2026, at which time the team will no longer provide support. Users must withdraw all assets through the UI before this date, and leveraged tokens must be redeemed before the UI is discontinued. Seamless's vault on Morpho will be closed in an orderly manner. Gauntlet, as the curator, will withdraw all lent assets from the Morpho marketplace, and users can withdraw directly through the Morpho application. Staking SEAM will be gradually shut down due to the termination of its yield source. Core contributors will prepare a governance proposal to distribute the remaining assets of the DAO vault to SEAM token holders.

The project was shut down for several reasons, including: the leveraged token failed to find a true product-market fit; liquidity caps and structural issues in the DeFi lending market limited scalability; and there were few viable revenue streams in the current market. The protocol operated in a capital-efficient bootstrapping manner, without investors or external funding, but lacked a clear path to sustainable revenue. The team stated that while the mechanism they built was effective, the market conditions for scaling it out had not yet materialized.