ZeroLend announced it will shut down after three years of operation, citing unsustainable economics, shrinking liquidity across supported blockchains, and escalating security risks. The protocol said persistent losses, inactive chains, and reduced oracle support made continued operations unviable in the current market environment.
The team’s immediate priority is enabling users to withdraw assets safely, particularly from low-liquidity networks such as Manta, Zircuit, and XLAYER. Most lending markets have been set to a 0% loan-to-value ratio to halt borrowing while withdrawals are processed and smart contracts are gradually updated to release locked funds.
The closure underscores structural pressures in decentralized lending, where thin margins, fragmented liquidity, and recurring exploits continue to challenge long-term sustainability. ZeroLend also confirmed partial refunds for users impacted by last year’s LBTC exploit on Base, funded through its LINEA token allocation.
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