In recent months, more than 10 decentralized finance (DeFi) protocols have ceased operations due to dwindling user bases and insufficient funding. Notable among these is Angle, which announced the phased shutdown of its EURA and USDA stablecoins, despite a combined total value locked (TVL) of $250 million. The company cited fundamental changes in the decentralized stablecoin sector as a key reason for its decision. Other projects like Polynomial and MilkyWay also faced similar challenges. Polynomial, despite achieving a cumulative trading volume of $4 billion, struggled with liquidity issues, which proved insurmountable in the derivatives market. MilkyWay underwent multiple transformations in an attempt to capture market trends but ultimately failed to secure a sustainable product-market fit. The closures highlight a broader trend of DeFi projects struggling to adapt to market shifts and maintain liquidity, underscoring the importance of liquidity as a critical factor for survival in the sector.