ZeroLend, a decentralized lending protocol that once held nearly $359 million in user deposits, is shutting down. Founder “Ryker” announced the wind-down on Monday in a post on X, citing persistent operational losses and a deteriorating ecosystem that made the protocol unsustainable.
The protocol’s total value locked has cratered 98% from its November 2024 peak to just $6.6 million as of Monday, according to DefiLlama data. The remaining TVL is currently distributed across Linea ($2.75 million), Ethereum ($1.97 million), and ZKsync Era ($933,000), with smaller balances remaining on Blast, Sonic, and Base, among other networks.
The collapse follows a prolonged period during which ZeroLend operated at a loss, with the founder pointing to several factors, including multiple early-stage chains becoming inactive or illiquid, oracle providers discontinuing support, and increased attention from hackers and scammers as the protocol grew.
DefiLlama data shows the protocol’s earnings deteriorating sharply. After generating $205,990 during 2024, ZeroLend’s earnings rose to $1.17 million in 2025 before falling to $132,290 in the current year-to-date period. Gross protocol revenue followed a similar trajectory, peaking at $3.11 million in 2025 before dropping to around $355,000 in 2026. The protocol has never distributed income to token holders.
What’s next?
“Our immediate priority is ensuring users can safely withdraw their assets,” Ryker wrote in the post. “Most markets have already been set to 0% LTV, and we strongly encourage all users to withdraw any remaining funds from the platform.”
For assets residing on Manta, Zircuit, and xLayer, where DefiLlama showed ZeroLend pools at around $76,000 and $13,000 for Manta and xLayer, respectively, the team is developing a recovery solution, according to Ryker. This involves a planned “timelock upgrade” to the protocol’s smart contracts intended to redistribute funds currently locked in these “illiquid” or inactive environments.
Regarding LBTC users on Base, Ryker addressed a separate incident from February 2024. The team has been working to trace and recover those funds and will provide partial refunds using LINEA airdrop allocations received by the team. Affected users have been instructed to contact moderators or submit support tickets.
For ZERO token holders, Ryker offered no recovery path. “For token holders, this marks the conclusion of the ZeroLend journey,” he wrote.
The ZERO token has fallen 34% over the past 24 hours and has lost nearly all its value since hitting a peak of $0.001 in May 2024, according to CoinGecko.
© 2026 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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