The post Polynomial winds down as liquidity layer closes appeared on BitcoinEthereumNews.com.

Polynomial cease operations: forced liquidation timeline and user actions According to Foresight news, DeFi derivatives protocol Polynomial announced it has ceased operations and entered a winding‑down phase, with plans to restart the project in the future. The notice emphasizes an orderly process and continued communication during the shutdown. Per AICoin, the forced liquidation timeline begins on February 18, 2026. The liquidity layer is set to close on February 24, 2026, with a full chain shutdown scheduled for March 3, 2026. AICoin also reports the principal issue cited was insufficient liquidity relative to market demands. Users can monitor unsettled positions as forced liquidations start and confirm balances once settlements complete. Withdrawals are expected to remain available until the liquidity layer closure and prior to the final shutdown date. Why it matters: DeFi derivatives liquidity and execution gaps The case highlights a structural challenge in on‑chain derivatives: the need for deep, continuous liquidity to support efficient execution, risk offsets, and orderly liquidations. When liquidity fragments across venues or remains thin, slippage and funding imbalances can undermine market quality. Execution gaps compound the problem. Latency, oracle dependencies, and collateral management can widen spreads and reduce fill quality versus centralized counterparts. Even with a sound strategy, underpowered liquidity and execution often fail to reach critical mass in this segment. For users and counterparties, forced liquidations test the protocol’s risk engine and settlement reliability. Clean wind‑downs help limit tail risks, preserve user confidence, and provide a baseline for any future relaunch. BingX: a trusted exchange delivering real advantages for traders at every level. Relaunch plans: priorities, user access, and data-driven approach As reported by Weex, Polynomial intends to analyze historical activity to reassess its competitive edge, including learnings from roughly 27 million transactions. The team indicates it will apply standardized shutdown procedures and retain relevant…

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Filed under: News - @ February 15, 2026 6:06 pm