ZeroLend Latest DeFi Platform to Shut Down Amid Liquidity, Revenue Pressures
ZeroLend, a decentralized finance lending platform, announced it will shut down after three years, citing unsustainable operations and mounting challenges. The ZERO token plummeted 45% in one day and is down 99.4% over the past year. ZeroLend operated as a multi-chain, non-custodial lending protocol focused on Layer 2 networks and offered capital-efficient lending products across various digital assets. Despite raising $3 million in a 2024 seed round with major crypto investors, ZeroLend failed to achieve sustainable revenue due to declining on-chain activity, technical and security challenges, discontinuation of oracle support, and persistent losses from thin lending margins. The team urged users to withdraw funds and committed to an orderly wind-down process. The closure follows a broader trend of DeFi platforms shutting down amid market pressures and liquidity issues. Industry voices highlight that fragmented liquidity and lack of utility in tokens are causing instability and short-term shutdowns, emphasizing the need for more unified, reliable crypto market infrastructure to support long-term adoption.
