Quick take:
- The platform is shutting down after three years due to several chains that it supports becoming “inactive or significantly less liquid.”
- ZeroLend also claims some oracle providers discontinued support, making it increasingly difficult to operate markets reliably or generate sustainable revenue.
- The teams also said the platform began to attract greater attention from malicious actors, including hackers and scammers, as the protocol grew.
ZeroLend, the multi-chain crypto lending protocol for liquid restaking and real-world asset tokens, has announced it is shutting down its platform. The announcement comes barely three years after its launch in 2023.
The company attributed the decision to a variety of factors, noting that several chains that it supports had become “inactive or significantly less liquid.” The platform also claimed that some oracle providers discontinued support, making it increasingly difficult to operate markets reliably or generate sustainable revenue.
It also said that as the protocol grew, the platform began to attract greater attention from malicious actors, including hackers and scammers.
ZeroLend has now set its sights on ensuring that its users safely withdraw their assets, according to a statement posted on the X platform.
“For assets on-chain such as Manta, Zircuit, Xlayer, and others, where liquidity has significantly deteriorated, some funds are currently tied to illiquid or inactive environments,” ZeroLend wrote on X. “We are actively working on a solution to return these funds to users. To facilitate this, we will execute a timelock upgrade that enables redistribution of the affected assets.”
According to the announcement, the process will involve updates to the protocol’s smart contract and is intended to maximize recovery for users.
ZeroLend said LBTC suppliers affected by last year’s Linea breach will receive partial refunds, with support from the LINEA airdrop allocations received by the team.
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The post Crypto Lending Protocol ZeroLend Shuts Down Citing Sustainability Concerns and Hacks appeared first on NFTgators.