The decentralized lending protocol zkLend has announced its closure after a significant exploit in February that led to the loss of $9.5 million.
Closure of zkLend
The zkLend team announced the protocol's closure via a post on X, stating that the decision was not made lightly and that the exploit had deeply affected user trust.
Liquidity Issues and User Support
Following the delisting of the ZEND token from major exchanges like Bybit and KuCoin, liquidity plummeted. As a result, zkLend decided to allocate its remaining treasury of $200,000 to a user recovery fund.
Failures Post-Exploit and Next Steps
Launched on the Starknet network in late 2023, the protocol struggled to recover from the hack. The team views the opening of their audited codebase as a way to support the community, allowing developers to utilize their audited contracts.
The closure of zkLend marks a significant event in the DeFi ecosystem, illustrating how vulnerabilities can affect user confidence and the functioning of protocols.
