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ZeroLend Shuts Down After Three Years, Citing Unsustainable Economics and Security Threats

ZeroLend Shuts Down After Three Years, Citing Unsustainable Economics and Security Threats

Published:
2026-02-17 09:13:02
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BTCCSquare news:

ZeroLend, a decentralized lending protocol operating across multiple blockchains including Manta, Zircuit, XLAYER, and Base, has announced its shutdown after three years. The team attributed the decision to unsustainable economics and escalating security challenges. Users are urged to withdraw assets immediately as most markets have been set to a 0% loan-to-value ratio.

The protocol, which allowed users to deposit cryptocurrencies to earn interest or borrow assets against collateral, faced mounting operational hurdles. Inactive chains, dwindling liquidity, and oracle providers dropping support contributed to its demise. A February 2025 exploit on Base chain drained $125,000, with victims set to receive partial refunds from LINEA token allocations.

This closure underscores the persistent volatility and risks in decentralized finance. Protocols continue grappling with the dual challenges of maintaining secure, liquid markets while achieving economic viability—a balance few have mastered in this nascent sector.

|Square

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