Catenaa, Monday, February 23, 2026-Decentralized lending protocol ZeroLend is winding down operations after its total value locked (TVL) fell 98% from a November 2024 peak of nearly $359 million to $6.6 million, founder Ryker announced last week.
The remaining TVL is spread across Linea ($2.75 million), Ethereum ($1.97 million), and ZKsync Era ($933,000), with smaller balances on Blast, Sonic, and Base. Ryker cited sustained operational losses, inactive or illiquid early-stage chains, discontinued oracle support, and heightened security risks as reasons the protocol became unsustainable.
ZeroLend’s earnings show a sharp decline, with $1.17 million earned in 2025 dropping to $132,290 year-to-date in 2026.
Gross revenue peaked at $3.11 million in 2025 and has fallen to approximately $355,000. The protocol has never distributed income to token holders.
The team is prioritizing safe withdrawals for users. Most markets have been set to 0% loan-to-value ratios, and Ryker urged users to retrieve remaining funds promptly.
Recovery plans are underway for assets on Manta, Zircuit, and xLayer through a timelock upgrade, while LBTC holders on Base may receive partial refunds via LINEA airdrops.
ZERO token holders, however, have no recovery path. The token has dropped 34% in the past 24 hours and has nearly lost all value since its May 2024 peak of $0.001.
The closure marks the end of ZeroLend’s operations, concluding its brief run in the decentralized lending space.
