ZeroLend, a decentralized lending protocol, has officially announced its shutdown, attributing the decision to insufficient liquidity and ongoing profitability challenges. Ryker, the founder, highlighted that several of the blockchains supported by the protocol have become inactive, leading to the failure of oracles to deliver necessary data, which hindered effective market management.
The situation has further deteriorated due to repeated hacking attempts and scams, alongside the thin profit margins that the business has been experiencing. In light of this, the team has urged users to withdraw their assets, noting that some funds remain locked in illiquid networks. To assist users, developers plan to update smart contracts in order to redistribute the frozen assets.
Additionally, Ryker revealed that liquidity providers impacted by an exploit on the Base network last February would receive partial compensation, sourced from the team's personal airdrop allocation. The total value locked in ZeroLend has dramatically decreased from a high of $359 million in November 2024 to a mere $6.59 million currently.
