Hats.finance Announced the gradual termination of managed operation services, stating that the market size has not grown as expected and its market share has been eroded by AI security tools.

According to Mars Finance, on December 1st, Hats.finance announced that it will gradually terminate its custody operations. Hats.finance stated that after careful evaluation, it recognizes that continuing to maintain a centralized user interface and server operation is unsustainable, and there are currently no new legal or operational framework plans to continue the current custody technology stack. Since 2021, Hats.finance has consistently pursued the idea that "a decentralized marketplace should have decentralized security." However, reality has not matched the initial vision. Smart contract security budgets have not grown in tandem with the expansion of DeFi as expected. Simultaneously, the rapid advancement of AI security tools and the increasing maturity of secure, reusable smart contract building blocks have reduced market demand for protocols like Hats, making it difficult for the HATS token to maintain long-term effective value support. In the future, the Hats.finance custody front-end and back-end (user interface and server) are expected to be offline by December 31, 2025. Most functions relying on this custody technology stack will gradually cease service. The Hats protocol itself will remain deployed on-chain and governed by the DAO. The core contract is designed to continue operating according to its code logic. If you wish to withdraw funds through the escrow user interface, it is officially recommended to initiate a withdrawal request before December 17, 2025 (subject to a 7-day cooling-off period plus a 7-day withdrawal window).