ZeroLend — a DeFi lending protocol — will shut down after three years, citing inactive/illiquid Ethereum layer-2 networks, loss of oracle support on some chains, increased attacks, and prolonged operating losses. The founder said the team will enable withdrawals, upgrade contracts to help redistribute funds stuck on low-liquidity chains, and is working to trace and recover funds from a February exploit that drained a BTC product on Base. ZeroLend’s TVL fell from nearly $359M in Nov 2024 to $6.6M and the ZERO token plunged following the announcement.

Shutdown followed prolonged losses, oracle failures, increased attacks, and an exploit that drained a BTC product on Base; TVL collapsed from ~$359M to $6.6M and the ZERO token plunged; team is enabling withdrawals and upgrading contracts to recover/redistribute funds.