Key Takeaways
- Withdraw Immediately: ZeroLend has disabled new borrowing and is urging all users to take their money out now.
- Revenue Collapse: The total money managed by the platform dropped from $359 million in 2024 to just $6.6 million today.
- Chain Inactivity: The protocol struggled because many of the “digital highways” (blockchains) it operated on stopped being used by the public.
- Security Issues: Repeated attacks by hackers and the loss of critical price-tracking tools made the business too expensive to run.
ZeroLend Protocol Shuts Down in 2026
The digital lending world has lost one of its notable players. After three years of helping people lend and borrow digital assets, ZeroLend is closing its doors due to security breaches and ghost-town blockchain networks.
- Who it affects: Anyone with digital assets currently stored in ZeroLend’s lending pools.
- Why it matters: It highlights the risks of keeping money in smaller or less-active digital financial systems.
- What to watch: The deadline for asset withdrawals and the team’s plan to help users recover “stuck” funds on certain networks.
This article explains what happened to ZeroLend, the specific challenges that led to its downfall, and the steps you need to take if you have money on the platform. We have analyzed official statements and market data to give you a clear picture of this shutdown.
What Happened to ZeroLend?
On February 16, 2026, the team behind ZeroLend announced they were officially starting a “gradual shutdown.” After three years of building, the founder, known as Ryker, stated that the project was no longer “financially sustainable.”
Running a digital bank (often called a De-Fi protocol) is expensive. You need constant security, price updates, and most importantly active customers. For ZeroLend, all three of these pillars crumbled at once.
The Three Main Reasons for the Shutdown
The team pointed to a “perfect storm” of problems that made it impossible to keep the lights on.
1. Inactive Digital Networks
ZeroLend was built to work across many different digital networks (blockchains). However, some of these networks, such as Manta, Zircuit, and xLayer, saw a massive drop in daily users. When a network becomes a “ghost town,” there is no one left to borrow money, which means there is no way for the protocol to earn fees and pay its bills.
2. Repeated Security Attacks
Over the last year, ZeroLend became a frequent target for digital thieves. In February 2025, a major hack involving a Bitcoin-related product on the Base network drained significant funds. These attacks didn’t just steal money; they forced the team to spend more on security than they were making in profit.
3. Broken Price Tools
To function safely, ZeroLend needs to know exactly how much your assets are worth every second. It uses services called “oracles” to get this data. Recently, several of these data providers stopped supporting the smaller networks ZeroLend relied on. Without accurate price data, the platform becomes a “blind pilot,” unable to safely manage loans without risking a total crash.
How it Impacts You: The Numbers
The decline of ZeroLend is best seen in the sheer amount of money that left the platform over the last 15 months.
| Metric | Peak (Nov 2024) | Current (Feb 2026) | Change |
| Total Money Managed | $359 Million | $6.6 Million | -98% |
| Annual Revenue | $3.1 Million | $355,000 | -88% |
| Platform Status | Fully Operational | Withdrawal Only | N/A |
What Should You Do Now?
If you have ever used ZeroLend, your first priority is to check if you still have assets sitting in their “pools.”
- Visit the official App: Go to the ZeroLend website and connect your digital wallet.
- Withdraw Assets: The team has set “loan-to-value” limits to 0%. This is a fancy way of saying they have locked the “deposit” door but left the “exit” door wide open.
- Check for Refunds: If you were a victim of the LBTC hack on the Base network last year, the team has promised a partial refund using a specific pool of tokens they held in reserve.
A Special Note on “Stuck” Funds
For some users on networks like Manta or xLayer, the money might look like it’s stuck because there isn’t enough “fuel” or activity to move it. The ZeroLend team is working on a technical update (called a “time lock upgrade”) that will act like a master key to unlock these funds and return them to users.
Frequently Asked Questions
Is my money safe if I don’t withdraw today?
The platform is currently in “withdrawal-only” mode, but the longer you wait, the higher the risk. If the few remaining price-tracking tools stop working, it might become much harder to get your money out later.
Why did Zero Lend fail while others survived?
Larger competitors usually stay on the busiest “digital highways” (like the main Ethereum network). ZeroLend tried to grow by going to many smaller, newer networks. When those networks failed to gain popularity, ZeroLend was left with high costs and no customers.
Will there be a new Zero Lend token?
No. The team has canceled their plans for any future token launches, calling it a “worthless venture” given that the main product is closing down.
What is the “Base Network” exploit mentioned?
In February 2025, a hacker used a fake version of Bitcoin to trick the system into letting them borrow real money. This created a hole in the platform’s finances that it never fully recovered from.
