BlockBeats report: On February 17, the lending protocol ZeroLend announced it will gradually shut down operations. The team stated that after three years of continuous operation, the protocol has become unsustainable in its current form due to declining liquidity on some early-supported chains, the termination of oracle service support, and the limited profitability and high risks inherent to the lending protocol itself.
ZeroLend stated that as the protocol grew, it attracted increased attention from hackers and fraudulent actors, compounded by prolonged operational losses, leading to the decision to wind down in an orderly manner. The current priority is ensuring the secure withdrawal of user assets, with most markets already set to 0% LTV; the team strongly advises users to withdraw any remaining funds from the platform as soon as possible.
For assets on chains with significantly deteriorated liquidity, such as Manta, Zircuit, and XLayer, some funds are currently in low-liquidity or inactive environments. The team plans to enhance user fund recovery by executing timelock upgrades and updating smart contracts to reallocate affected assets.
In addition, regarding the previous LBTC-related events on the Base chain, ZeroLend stated that it will use its allocated LINEA airdrop to provide partial refunds to affected LBTC suppliers and recommends that relevant users contact the support team through official channels to coordinate next steps. ZeroLend emphasized its commitment to a transparent and orderly wind-down process.