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ZeroLend Review 2026: Aave V3 Fork Winding Down

ZeroLend was an Aave V3-based lending protocol spread across several Layer 2 networks. Its team announced in February 2026 that it is permanently winding down, so this is now a record of the project rather than a recommendation.

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By the DappsAtlas editorial team · Updated Nov 5, 2026

DappsAtlas score

3.0/10

Weak

Visit ZeroLend Lending

Our verdict on ZeroLend Lending

3.0/10

ZeroLend was a multi-chain lending protocol based on Aave V3, with oracle feeds from Pyth and Chainlink. Its team announced a permanent wind-down in February 2026, and TVL has fallen to under $1 million from a reported peak near $359 million. It is not suitable for new deposits. Existing users should focus on safely withdrawing funds through official channels. Everyone else may find it useful as a case study of how quickly fork-based lending protocols can lose liquidity.

Score breakdown

How ZeroLend Lending scores

Security: 4.0/10
Ease of use: n/a
Fees: n/a
Features: 5.5/10

Scores run from 0 to 10 and are based only on facts we could verify. Where information was missing we mark the score n/a rather than guess.

What is ZeroLend Lending?

ZeroLend was a decentralized lending protocol built on Layer 2 networks. It was based on Aave V3 and used Pyth and Chainlink oracles. It was listed in July 2023 and later spread across chains including zkSync Era, Linea, Base, Blast, Manta, Zircuit and Ethereum.

In February 2026, coverage reported that ZeroLend was permanently winding down after about three years. Reports say TVL fell from a peak of roughly $359 million in November to well under $1 million, and cite a collapse in revenue as the reason.

The project's own site still describes an open source protocol for non-custodial liquidity markets. The audit count listed is two, but the project's homepage does not publish audit reports, team information or fees.

How ZeroLend Lending works

ZeroLend followed the pooled lending model popularised by Aave. Depositors supply tokens into a shared pool and receive interest-bearing receipts. Borrowers lock collateral worth more than their loan and draw assets from the pool, paying interest that is split among suppliers.

Prices from oracles (Pyth and Chainlink here) decide how much each user can borrow. If collateral value falls too far, liquidators can repay part of the debt and claim collateral at a discount, which keeps the pool solvent.

The team's 2024 white paper described a move toward permissionless pools where anyone could create a market for any asset on any chain. Whether those features reached full use is not confirmed.

6 features

Key features

Aave V3 foundation

The protocol is built on the Aave V3 codebase, a widely used lending design, with supply and borrow markets.

Non-custodial markets

Users supplied assets to earn interest or borrowed against collateral at variable or stable rates, without handing custody to a company.

Oracle price feeds

Markets relied on Pyth and Chainlink price feeds to value collateral.

Multi-chain deployment

The protocol was deployed on zkSync Era, Manta, Linea, Base, Blast, Zircuit, Ethereum and several other networks.

Permissionless pools

A June 2024 white paper described permissionless lending pools that anyone could create for any chain and asset.

LRT and RWA focus

One guide describes support for gasless transactions and a focus on liquid restaking tokens and real-world assets.

Pros and cons

What we like

Built on the Aave V3 design, which is widely used and well understood.
Non-custodial markets with variable or stable rate options.
Used established oracle providers, Pyth and Chainlink.
Open source approach, as the homepage states.
Two audits are listed for the protocol.

Watch out for

The team announced in February 2026 that it is permanently winding down operations, so the protocol is no longer a place to start new positions.
Reported peak TVL of about $359 million has collapsed to under $1 million, and the last 7-day change was about -33%.
Search coverage of the shutdown cites a revenue collapse, which points to weak demand for the business model.
The homepage publishes little beyond a one-line description, with no visible fee, audit or team details.
The ZERO token faces an uncertain future after the wind-down announcement.

ZeroLend Lending fees

ZeroLend's homepage does not publish a fee schedule. As with Aave V3 forks, borrowers would pay a variable or stable interest rate set by pool utilisation, and suppliers would earn the matching yield, minus any protocol reserve share. The exact reserve factor and any other charges are not published.

Users also pay network gas on whichever chain they use. Current rates would be visible inside each market on the app, if it remains accessible during the wind-down.

Is ZeroLend Lending safe?

ZeroLend is non-custodial, so users keep control of funds through their wallets, but they carry smart-contract and oracle risk on each chain. Two audits are listed, though the homepage does not publish the reports. An audit does not guarantee safety.

The larger risk now is operational. With a permanent wind-down announced, support, front-end hosting and governance may disappear, and fake withdrawal pages are a common risk during shutdowns. Use only verified official channels. No regulatory or licensing details are published.

6 steps

How to get started with ZeroLend Lending

1
Do not open new positions: the team has announced a permanent wind-down.
2
If you already have funds in ZeroLend, find the official wind-down announcement on the project's verified social account.
3
Connect your wallet only through the official site and confirm the URL before signing anything.
4
Repay any borrows and withdraw supplied collateral on each chain where you hold a position.
5
Check approvals on your wallet and revoke any you no longer need.
6
Keep records of transactions for tax purposes.

Open ZeroLend Lending

Who ZeroLend Lending is for

ZeroLend is no longer suited to new users. It is relevant mainly to existing depositors and borrowers who need to close positions, and to researchers studying Aave-fork lending protocols on Layer 2 networks.

ZeroLend Lending FAQs

Is ZeroLend shutting down?

Search coverage dated February 17, 2026 reports that ZeroLend announced a permanent wind-down after about three years of operation. Reports tie the decision to a collapse in revenue. Anyone with funds in the protocol should follow the team's official channels for withdrawal instructions.

What was ZeroLend?

ZeroLend was a non-custodial lending protocol where users could supply assets to earn interest or borrow against collateral at variable or stable rates. It was built on Aave V3 and used Pyth and Chainlink price feeds. It ran on Layer 2 networks and other chains.

How much TVL did ZeroLend have?

Reports say the protocol peaked at around $359 million in total value locked in November. The tracked figure is now under $1 million, with a drop of roughly 33% in the last week.

What is the ZERO token?

ZeroLend's token is ZERO. Its token generation event was announced for May 6, 2024. Given the wind-down, readers should treat it as a high-risk asset and check current information from official sources.

Which chains did ZeroLend support?

The tracked deployments include zkSync Era, Manta, Abstract, X Layer, Linea, Hemi, Blast, Base, Zircuit, Ethereum and Corn. Availability of each market may have changed since the shutdown announcement.

What should users do with open positions?

If you hold a position, check ZeroLend's official social channels for the wind-down process and repay or withdraw as instructed. Do not open new positions in a protocol that has announced it is closing. Always confirm links before interacting with any contract.

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