ZeroLend has announced that it is ceasing operations, has reduced the LTV to 0% for most markets, and is urging users to withdraw their funds as soon as possible.

On February 17, lending protocol ZeroLend announced it will wind down operations gradually. After three years of operation, the team cited **diminishing liquidity from early supporter chains**, the **termination of oracle service support**, the protocol’s **limited profit margins**, and **elevated risks** as reasons its current model is unsustainable. As the protocol scaled, it drew more hacker and fraud attention—combined with long-term operational losses—prompting the decision to shut down in an orderly fashion. The top priority now is ensuring **safe user asset withdrawals**: most markets already have 0% LTV (loan-to-value) set. The team strongly urges users to withdraw remaining funds from the platform as soon as possible. For assets like Manta, Zircuit, and XLayer (where on-chain liquidity has deteriorated sharply), some funds are in low-liquidity or inactive environments. The team says it will advance **affected asset reallocation** via timelock upgrades and smart contract updates to maximize user fund recovery. Regarding the prior LBTC-related incident on Base, ZeroLend will use the **LINEA airdrop allocation** the team received to partially refund affected LBTC suppliers. It advises relevant users to contact support via official channels to coordinate next steps. The team emphasizes a **transparent, orderly shutdown process**.