Donut App malfunctioning and withdrawals are blocked…again.

The app (Android and iOS) currently shows a 0% yield and withdraw attempts generate an error to contact support. No word on the cause yet, but verified other users are seeing the same:

I took the risk and kept some funds in after their exposure earlier this year. They restructured and improved security. We’ll see how it plays out, but it doesn’t look great.

View Source

10 thoughts on “Donut App malfunctioning and withdrawals are blocked…again.”

  1. I too took the risk on Donut. When FTX started their death spiral I yanked my 11k in savings out. I am feeling very good about that choice right now.

    I still have 1 penny in the app so I can login and monitor it. I am seeing 0% right now, it was still 5% yesterday.

    Hopefully the zero percent thing is because of the influx of people putting money into defi and so they can’t offer that high of APY anymore since there aren’t enough smart contracts to go around.

    But I am worried that one of the groups they invest through is going to take a loss because of exposure to the FTX tree of poison.

    Reply
  2. Here is what it says in the faq of their app:

    The events surrounding FTX have created unprecedented market turmoil, which has indirectly impacted our principal lender, Genesis. In consultation with their professional financial advisors and counsel, they have taken the decision to temporarily suspend redemptions and new loan originations in their lending business.
    Frequently Asked Questions

    How does this affect Donut?

    Genesis is our principal lending partner at Donut. By pausing redemptions, Donut is unable to withdraw user funds from Genesis. To best protect your funds we have temporarily paused all deposits, withdrawals, and earnings on Donut until we have further clarity.
    What’s paused?

    All account actions on Donut are temporarily paused. This includes deposits, withdrawals, earnings, and automated investments.
    Will I continue to earn APY during this pause?

    No.
    Does Donut still have funds with their other lending partners?

    Yes.
    Can I withdraw funds from other lending partners?

    No. All withdrawals have been temporarily paused whilst we await further information from Genesis.
    What happens next?

    You are our highest priority. We’re actively working on your behalf to return to normal operations and are encouraged by Genesis’s commitment to fulfilling its obligations to customers. Genesis is working diligently to shore up the necessary liquidity to meet their lending client obligations, in a fair and responsible manner and plans to deliver their plan for the lending business by next week.

    Reply
  3. I have 3600$ put of which 3K is mine and rest is all it grew in time
    I make 250K+ and so far have put around 10-12K in crypto and with more time I am realizing why ETF and high yield saving account is a way to go ….

    Reply
  4. I got very luck and withdrew all my money yesterday. I hope everyone who has funds with Donut gets their money all back.

    I recall during the Luna event they had about 15% losses on their most aggressive investment plan, and the two more conservative plans suffered no loss. Since they reworked their offerings and only offer the most conservative plan, hopefully this means people will get out of this just fine.

    Regardless, I think this goes to show just how risky these firms are. They’re all over-levered and don’t have the oversight to prevent something like this from happening. Centralized firms that act as a medium to DeFi can’t be relied on.

    Reply

Leave a Comment