After operating for three years, ZeroLend has confirmed it will shut down, pointing to ongoing sustainability issues and rising operational pressure.
According to team member Deadshot Ryker, the group made the “difficult decision” to close the protocol, explaining that it can no longer function viably in its current structure.
A mix of declining liquidity across several supported networks, discontinued oracle services, and growing security concerns ultimately pushed the project to this point. ZeroLend originally launched as a multi-chain lending platform, expanding to ecosystems like Manta, Zircuit, XLayer, and Base. While early activity showed promise, liquidity on some of these chains gradually faded, limiting revenue opportunities and increasing risk exposure.
What Users Need to Do
The team’s top priority now is ensuring everyone can retrieve their assets. Most markets have already been adjusted to 0% loan-to-value (LTV), and users are strongly encouraged to withdraw funds as soon as possible.
Some holdings remain stuck on chains with limited or inactive liquidity. To handle this, ZeroLend plans to roll out a timelock contract upgrade designed to unlock and redistribute funds where possible, aiming to improve recovery outcomes.
The team also addressed a previous LBTC-related issue on Base. With help from a LINEA airdrop allocation, impacted suppliers will receive partial reimbursements. Affected users are advised to contact moderators or open a support ticket for further instructions.
The shutdown marks the end of another lending venue in the DeFi space and underscores how fragmented liquidity and infrastructure dependencies can weigh heavily on multi-chain protocols. Over the coming weeks, ZeroLend says it will focus on closing operations in an orderly and transparent manner.
Disclaimer: This content does not constitute trading or investment recommendations. It’s essential to conduct your own research before purchasing any cryptocurrency or investing in any services.
