DeFi protocol ZeroLend shuts down after three years

Decentralized lending protocol ZeroLend announced it will shut down after three years of operation, saying the project is “no longer sustainable” due to thin margins, unsustainable economics and mounting security threats, including hacks ^[1][4].

In a statement shared by team member Deadshot Ryker, ZeroLend said several blockchains it operated on have become inactive, which led to periods of operating at a loss; the team said it has made the “difficult decision” to wind down operations and urged users to withdraw funds ^[2][4].

Reporting also cited liquidity strain and rising operational risks as factors in the shutdown, with the protocol confirming that recent hacks and security pressures contributed to the decision to cease operations and return funds to users where possible ^[3][1].

ZeroLend is winding down after three years; users have been urged to withdraw assets as the team closes the protocol and addresses outstanding liquidity and security issues ^[2][1].