Closure of ZeroLend

The decentralized lending protocol ZeroLend has announced a complete cessation of its activities. The project founder, known by the pseudonym Ryker, explained this decision by insufficient liquidity in supported networks and lack of profit. This development highlights the challenges even successful projects face in the DeFi space.

Reasons for Closure

The main reasons for the closure were listed as inactivity in part of the blockchains, the cessation of oracle operations, and constant hacker attacks. Poor market management also negatively influenced the outcome. Moreover, low margins did not allow the project to achieve sustainability.

Liquidity Issues

The protocol encountered a problem with users’ assets being locked in illiquid networks. To address this issue, developers plan to update smart contracts to redistribute the frozen funds. This situation once again emphasizes the importance of a reliable infrastructure for the successful operation of DeFi projects.

Financial Situation and Compensation

Since the end of 2024, the total value locked (TVL) in the protocol has dropped from $359 million to $6.59 million. As a result, the team announced partial compensation to liquidity providers affected by an exploit in the Base network a year ago. The compensations will be funded from the team’s personal airdrop allocation.

Market Impact

Amid the closure announcement, the price of the native token ZERO fell by 33.5%. This indicates a lack of trust among investors and market participants in the sustainability of such projects. This is not the first case: in August 2025, the Eden Network protocol also discontinued its operations due to high competition, and in November, DappRadar cited financial instability.

Conclusion

The closure of ZeroLend highlights the need for careful planning and a sustainable financial model for DeFi projects.

• Strengths: Quick team response and compensation attempts.
• Risks: Loss of trust from users and investors.
• Opportunities: Using experience to improve future projects.
• Threats: Increasing competition and technical challenges.

Follow new insights in our telegram channel.

No need to invent complex schemes and look for the "grail". Use the Resonance platform tools.

Register via the link — get a bonus and start earning:
OKX | BingX | KuCoin.

Promo code TOPBLOG gives you a 10% discount on any Resonance tariff plan.