DeFi lending protocol Zerolend halts operations entirely

Uk Jin

Summary

Decentralized finance (DeFi) lending protocol Zerolend said it has decided it is not sustainable in its current structure and will halt operations.
It cited a decline in users and liquidity, oracle providers ending support, and prolonged losses on low-liquidity networks, which made stable market operations and revenue generation difficult.
Amid deepening losses due to hacking incidents and fraud-related attacks, Zerolend was reported to have plunged more than 30% intraday after the platform’s announcement.

Decentralized finance (DeFi) lending protocol Zerolend is suspending operations.

According to Cointelegraph on the 17th (Korea time), Zerolend founder "Ryker" announced the shutdown via X (formerly Twitter), saying, "We’ve operated the protocol for three years, but we’ve concluded it’s no longer sustainable in its current structure."

The decision reportedly follows a sharp decline in user counts and liquidity across some of the networks Zerolend has supported, making operations more difficult. Ryker said, "With some oracle providers discontinuing support, it became difficult to maintain stable market operations and generate revenue," adding, "We incurred prolonged losses on low-liquidity networks."

Ryker also said the protocol being targeted by attacks stemming from hacking incidents and fraud schemes contributed to the deficit.

He added, "If you have assets remaining on the platform, please withdraw them as soon as possible," and said Zerolend would "provide smooth support for the withdrawal process" to protect user assets.

Following the announcement, Zerolend plunged more than 30% intraday.