The cryptocurrency lending protocol ZeroLend has ceased operations due to “unsustainability.”, 2026/02/17 12:45:24

The decentralized protocol ZeroLend, which facilitated cryptocurrency lending across various blockchains, has announced its cessation of operations after three years of activity. The reason cited is “economically unviable conditions”: issues with liquidity on the blockchains and increasing security threats.

Primarily, the halt in operations is attributed to data providers ceasing their support for the service. Additionally, liquidity on the Manta, Zircuit, and XLAYER networks has sharply diminished. Concurrently, the risks of hacking attacks have been consistently rising, as noted by ZeroLend. The project team emphasized that given the initially low profitability and high risk levels, the lending protocols operated at a loss for an extended period. 

The developers have assured that for funds “stuck” in low liquidity networks (Manta, Zircuit, XLAYER), the team will gradually update smart contracts to release the maximum possible amount. Users are advised to withdraw their assets as soon as possible and to reach out to official support channels if necessary. Most markets have been switched to a 0% loan-to-collateral ratio, indicating a complete inability to engage in further borrowing.

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— ZeroLend (@zerolendxyz) February 16, 2026

The team also addressed the situation regarding LBTC (Lombard Staked Bitcoin) on the Base network. In February of last year, an attacker utilized counterfeit LBTC as collateral and withdrew liquidity. For the affected users, the project team has arranged partial reimbursements through the distribution of LINEA tokens. To receive compensation, impacted users must contact moderators or submit a request to customer support. 

Lending markets like ZeroLend are blockchain platforms where users deposit cryptocurrencies and earn interest, similar to a savings account. At the same time, borrowers can take out assets by providing collateral. Essentially, this is a “peer-to-pool” lending system that operates without the involvement of banks. 

Oracles play a crucial role in this system, providing real-time price data. Without their support, the operation of lending markets becomes impossible or highly unreliable. When oracles stop their support, the lending mechanisms are disrupted, rendering the platform unfit for use. This is what occurred with ZeroLend.  

In Russia, illegal lenders have become more active, offering microloans in cryptocurrency. In practice, this could lead to exorbitant interest rates on loans, as warned by the Public Chamber.