Loss-making DeFi lender ZeroLend to shut down after 98% TVL drop
DeFi lender ZeroLend is shutting down due to persistent operational losses and a 98% drop in Total Value Locked (TVL).Summary
Decentralized lending protocol ZeroLend, founded by "Ryker," announced its shutdown following persistent operational losses and a severe decline in user deposits, with its Total Value Locked (TVL) plummeting 98% from its peak of nearly $359 million to $6.6 million. The founder cited factors like inactive chains, discontinued oracle support, and increased security threats as reasons for the unsustainability. The immediate priority is enabling users to safely withdraw remaining assets, with most markets set to 0% Loan-to-Value (LTV). The team is developing a recovery solution for funds locked on Manta, Zircuit, and xLayer via a smart contract upgrade. However, ZeroLend offered no recovery path for ZERO token holders, marking the end of the protocol's journey.
(Source：The Block)