ZeroLend, a decentralized finance (DeFi) lending protocol, has officially announced its decision to cease operations following a catastrophic 98% decline in its Total Value Locked (TVL). The platform, which once positioned itself as a rising competitor in the lending space, saw its liquidity evaporate as market sentiment shifted and users withdrew assets in mass. The development team cited unsustainable financial losses and an inability to maintain the protocol’s infrastructure as the primary reasons for the shutdown. According to the project’s final update, the protocol had become loss-making, making it impossible to continue development or security maintenance. Users have been urged to withdraw any remaining collateral through the protocol’s interface immediately before the frontend is permanently taken offline. This collapse highlights the significant risks and volatility remaining in the DeFi sector, where smaller protocols often struggle to survive massive liquidity drains.
Source: Loss-making DeFi lender ZeroLend to shut down after 98% TVL drop
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