ZeroLend Shuts Down Amid Low Liquidity and User Adoption

[etfs]

Decentralized lending protocol ZeroLend has announced it is shutting down after three years of operation. Founder Ryker cited low activity and liquidity on the Ethereum layer-2 blockchains it supported, as well as rising operational risks, as reasons for the closure.

Once valued at nearly $359 million in total value locked (TVL) in November 2024, ZeroLend’s TVL has dropped to just $6.6 million. Users are urged to withdraw remaining funds, though some assets may be temporarily locked on illiquid chains.

[tradelikepro]

ryker citing operational risks makes sense, managing layer-2 lending is no joke