Zerolend Founder Announces Protocol Wind‑Down and Withdrawal Guidance

Zerolend announces closure of its lending protocol and urges users to withdraw assets while recovery efforts continue.

Deadshot Ryker, founder of Zerolend, posted on Discord that after three years the protocol will wind down operations due to declining liquidity on several chains, loss of oracle support, increased malicious activity, and prolonged unprofitable operation; most markets are set to 0% loan‑to‑value (LTV) and users are urged to withdraw remaining funds immediately. The announcement states the team will execute a timelock upgrade to enable redistribution of assets trapped on illiquid chains such as Manta, Zircuit, and XLayer, and asks affected users to contact moderators or submit support tickets for coordination.

The post notes a prior February incident affecting LBTC suppliers on Base and says partial refunds will be provided using a $LINEA airdrop allocation, while token holders are informed this marks the end of Zerolend’s project journey; the team emphasizes an orderly, transparent wind‑down and direct support for recoveries. Users should withdraw assets now and follow official support channels for assistance and updates.

🧭 FAQs

• What immediate action should Zerolend users take? Withdraw any remaining assets from Zerolend now.
• Which chains have illiquid or locked funds? Manta, Zircuit, XLayer and other specified chains have deteriorated liquidity.
• How will affected LBTC users on Base be compensated? LBTC suppliers on Base will receive a partial refund funded by the team’s $LINEA airdrop allocation.
• How can users get help or coordinate recovery steps? Contact Zerolend moderators or submit a support ticket through the project’s official channels.