ZeroLend shutdown: gradual wind-down, withdraw funds now
ZeroLend, a multi-chain lending protocol, announced a gradual shutdown and advised users to withdraw funds as soon as possible. The team characterized the process as a managed wind-down rather than an abrupt halt.
Operations are expected to taper across supported networks as markets and oracles are retired. Users should expect changing availability by chain during the transition.
No definitive cutoff date for withdrawals was provided in the available materials. The guidance stresses prompt withdrawals while the interface and markets remain accessible.
Why it matters: 98% TVL collapse and Vitalik Buterin’s L2 debate
At its peak in November 2024, ZeroLend’s total value locked stood near $359 million, then collapsed about 98% to roughly $6.6 million, as reported by MEXC News. The figures point to sustained liquidity flight rather than a single market shock.
Gross revenue also deteriorated: about $3.1 million in 2025 versus roughly $355,000 so far in 2026, according to CryptoBriefing. Such declines left limited margin to fund security, oracle data, and multi-chain operations.
Media have linked the moment to a broader debate on scaling strategy. As reported by Cointelegraph, Ethereum co-founder Vitalik Buterin recently questioned reliance on numerous layer-2s, arguing more security-aligned scaling through mainnet and native rollups may be preferable.
In explaining the decision, the project’s founder emphasized structural pressures rather than a single failure. “After three years of building and operating the protocol, we have made the difficult decision to wind down operations,” said Ryker, ZeroLend founder.
At the time of writing, market dashboards showed Aave (AAVE) near $122.40 with very high volatility in the same feed. This market context does not imply any view on valuation or risk.
How to withdraw funds from ZeroLend and protect positions
The protocol has urged users to withdraw remaining balances while the application and relevant markets stay live. Availability may differ by chain during the wind-down.
Borrowers should expect that collateral and loans remain governed by protocol mechanics during the transition. Loss of oracle support or liquidity could affect pricing and the sequencing of position changes.
Some supported networks have become inactive or less liquid, which may slow redemptions. Timelines and functionality could change without notice as components are decommissioned.
Outstanding user issues, refunds, and key caveats
Status of LBTC exploit on Base and Linea airdrop refunds
ZeroLend previously faced an exploit involving LBTC on the Base network. According to CoinLaw, Ryker said affected suppliers will receive partial refunds via an allocation from a Linea (LINEA) token airdrop. The scope and timing of those allocations were not fully detailed. Users should treat the refund as partial and contingent on third-party distributions.
Dependencies and caveats: inactive chains, oracle support, security risks
The founder cited multiple structural headwinds: blockchains that became inactive or significantly less liquid, loss of support from oracle providers, thin profit margins, and increasing exposure to hackers and scammers. These dependencies can alter market availability, pricing reliability, and the operational cadence of withdrawals.
Security and market conditions may evolve during the wind-down, and liquidity could be uneven across networks. Users should anticipate operational constraints until the process concludes.
FAQ about ZeroLend shutdown
How do I withdraw funds from ZeroLend and what happens to my open loans and collateral?
Withdraw while markets remain active; open loans and collateral follow existing protocol mechanics. Availability may vary by chain and oracle status during the wind-down.
Why did ZeroLend shut down, was it due to inactive chains, loss of oracle support, thin margins, or security risks?
The founder cited inactive chains, lost oracle support, thin margins, and rising security risks as core reasons, alongside deteriorating liquidity and revenue.
Last updated: 2026-02-18
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Other Posts
- Amplify 2024: Ohio’s Premier Blockchain Summit
- Polymarket Announces U.S. Beta Relaunch Amid Market Buzz
- China, US Conclude Trade Talks with Focus on Cooperation
- Michael Saylor Denies Bitcoin Sell-Off Amid Large BTC Transfer
- Court Upholds Fed’s Rejection of Custodia Bank’s Request
- Kazakhstan Explores Crypto Reserves Backed by National Funds
- Nordea Bank Introduces Bitcoin ETP Trading for Nordic Customers
- EU Opens Antitrust Probe Into Deutsche Boerse and Nasdaq Derivatives Dealings
- U.S. Treasury Proposes New Tax Relief Regulations
- Radiant Capital Faces $50M Loss in Major Security Breach
- SEGG Media Unveils $300 Million Crypto Reserve Plan
- 21Shares Files S-1 With SEC to Launch Hyperliquid ($HYPE) ETF
- JPMorgan Increases Holdings in BlackRock’s Bitcoin ETF
- Hong Kong Sentences Influencer for Unlicensed Investment Advice
- Franklin Templeton Signals TradFi and Crypto Integration
- Crypto Leaders Address Macro Volatility Amid Market Shifts
- MicroStrategy Retains Spot in Nasdaq 100 Amid Criticism
- Capital A and Standard Chartered Explore Malaysia Stablecoin Launch
- JPMorgan Chase Launches 24/7 Digital Deposit Token for Clients
- CFTC Chairman Selig Plans to Formalize Crypto Regulations
- Amplify 2024: Ohio’s Premier Blockchain Summit
- Polymarket Announces U.S. Beta Relaunch Amid Market Buzz
- China, US Conclude Trade Talks with Focus on Cooperation
- Michael Saylor Denies Bitcoin Sell-Off Amid Large BTC Transfer
- Court Upholds Fed’s Rejection of Custodia Bank’s Request
- Kazakhstan Explores Crypto Reserves Backed by National Funds
- Nordea Bank Introduces Bitcoin ETP Trading for Nordic Customers
- EU Opens Antitrust Probe Into Deutsche Boerse and Nasdaq Derivatives Dealings
- U.S. Treasury Proposes New Tax Relief Regulations
- Radiant Capital Faces $50M Loss in Major Security Breach
- SEGG Media Unveils $300 Million Crypto Reserve Plan
- 21Shares Files S-1 With SEC to Launch Hyperliquid ($HYPE) ETF
- JPMorgan Increases Holdings in BlackRock’s Bitcoin ETF
- Hong Kong Sentences Influencer for Unlicensed Investment Advice
- Franklin Templeton Signals TradFi and Crypto Integration
- Crypto Leaders Address Macro Volatility Amid Market Shifts
- MicroStrategy Retains Spot in Nasdaq 100 Amid Criticism
- Capital A and Standard Chartered Explore Malaysia Stablecoin Launch
- JPMorgan Chase Launches 24/7 Digital Deposit Token for Clients
- CFTC Chairman Selig Plans to Formalize Crypto Regulations
- Amplify 2024: Ohio’s Premier Blockchain Summit
- Polymarket Announces U.S. Beta Relaunch Amid Market Buzz
- China, US Conclude Trade Talks with Focus on Cooperation
- Michael Saylor Denies Bitcoin Sell-Off Amid Large BTC Transfer
- Court Upholds Fed’s Rejection of Custodia Bank’s Request
- Kazakhstan Explores Crypto Reserves Backed by National Funds
- Nordea Bank Introduces Bitcoin ETP Trading for Nordic Customers
- EU Opens Antitrust Probe Into Deutsche Boerse and Nasdaq Derivatives Dealings
- U.S. Treasury Proposes New Tax Relief Regulations
- Radiant Capital Faces $50M Loss in Major Security Breach
- SEGG Media Unveils $300 Million Crypto Reserve Plan
- 21Shares Files S-1 With SEC to Launch Hyperliquid ($HYPE) ETF
- JPMorgan Increases Holdings in BlackRock’s Bitcoin ETF
- Hong Kong Sentences Influencer for Unlicensed Investment Advice
- Franklin Templeton Signals TradFi and Crypto Integration
- Crypto Leaders Address Macro Volatility Amid Market Shifts
- MicroStrategy Retains Spot in Nasdaq 100 Amid Criticism
- Capital A and Standard Chartered Explore Malaysia Stablecoin Launch
- JPMorgan Chase Launches 24/7 Digital Deposit Token for Clients
- CFTC Chairman Selig Plans to Formalize Crypto Regulations
Latest
SUI price holds above $0.80 signaling possible continuation of upward momentum
Press Release
Trust Wallet Launches Cash Deposits, Enabling Users to Convert Physical Cash Into Crypto
Bitmine Immersion Technologies (BMNR) Announces ETH Holdings Reach 4.371 Million Tokens, and Total Crypto and Total Cash Holdings of $9.6 Billion
