DeFi protocol ZeroLend shuts down after 3 years, citing inactive chains and hacks

Decentralized lending protocol ZeroLend announced it is winding down operations after three years, citing unsustainable economics, thin margins, and rising security threats as key factors. The protocol struggled with challenges like price data providers dropping support and shrinking liquidity on networks such as Manta, Zircuit, and XLAYER, leading to prolonged periods of operating at a loss. ZeroLend's immediate priority is ensuring users can safely withdraw their assets, with markets set to a 0% loan-to-value ratio to prevent further borrowing. Affected users with assets stuck on low-liquidity chains will see scheduled smart contract updates to free up funds. Additionally, users who deposited Lombard Staked Bitcoin (LBTC) on Base, which suffered an exploit last year, will receive partial refunds funded by the team's LINEA drop allocation.

(Source：CoinDesk)