The post DeFi protocol ZeroLend shuts down after 3 years, citing inactive chains and hacks appeared on BitcoinEthereumNews.com.

Decentralized lending protocol ZeroLEnd is winding down operations after three years, citing unsustainable economics amid inactive blockchains and rising security threats. The protocol, which ran crypto lending markets across various blockchains, said sustained efforts couldn’t overcome challenges such as price data providers dropping support and shrinking liquidity on networks like Manta, Zircuit, and XLAYER. These issues and constant hacker threats have made it unsustainable. “Combined with the inherently thin margins and high risk profile of lending protocols, this resulted in prolonged periods where the protocol operated at a loss,” the team stated in an official update. Lending markets such as ZeroLend are blockchain platforms where users deposit their cryptocurrencies to earn interest (like a savings account), while others borrow those assets by putting up collateral. Think of it as peer-to-pool lending without banks. Oracle providers provide real-time price data to lending markets such as ZeroLend. When they drop support, it breaks the lending markets, making them unreliable or impossible to run. The shutdown underscores harsh realities: fleeting liquidity, persistent exploits, and dwindling investor interest in broader corners of the digital asset market continue to test DeFi protocols. ZeroLend’s team said its top priority is ensuring that “users can safely withdraw their assets” from the protocol. For assets stuck on low-liquidity chains such as Manta, Zircuit, and XLAYER, the team will update the smart contracts on a set schedule to free up as much as possible. Users need to withdraw quickly, as most markets have been set to a 0% loan-to-value ratio, which means no borrowing is allowed. LBTC holders on Base get partial relief Lombard Staked Bitcoin, or LBTC, a year-bearing version of bitcoin used in DeFi lending on ZeroLend’s markets on Coinbase’s Layer 2 network Base, experienced an exploit in February last year, The attacker used a forged LBTC…

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Filed under: News - @ February 17, 2026 7:25 am