Another closure protocol has been announced in the cryptocurrency market.
As a result, decentralized finance (DeFi) lending protocol Zerolend is terminating its services after three years of operation.
Zerolend announced that it had decided that its current structure was no longer viable and that this decision was made following a sharp decline in user numbers and liquidity on some of the networks supported by Zerolend.
The team said the protocol was losing money due to the increase in long-inactive chains, low profit margins, and the constant threat of cyberattacks.
The statement said that declining user numbers and liquidity, the end of oracle provider support, and prolonged losses on low-liquidity networks were making it difficult to maintain stable market transactions and generate revenue.
The team said that despite continued efforts, it was unable to overcome issues such as discontinued price data provider support and decreasing liquidity in networks like Manta Network (MANTA), Zircuit (ZRC), and X Layer (XLAYER).
The team also added that victims of last year’s LBTC attack on the base chain will receive a partial refund using Linea (LINEA) tokens allocated by the team.
“If you have any assets remaining on the platform, please remove them as soon as possible.”
Zerolend will provide seamless support for the withdrawal process to protect user assets.
Following this announcement, ZeroLend (ZERO) lost more than 30% of its value.
*This does not constitute investment advice.