Key Takeaways
- zkLend is shutting down after a safety exploit and the ZEND token’s delisting from Bybit and KuCoin.
- The protocol will use its remaining $200,000 treasury to help affected customers and is open-sourcing its codebase.
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zkLend, a decentralized lending protocol constructed on Starknet, has introduced it’ll stop operations within the wake of a February 2025 exploit that led to the lack of practically $10 million and the delisting of its ZEND token from main crypto exchanges.
The protocol will allocate its remaining treasury of $200,000 towards a restoration fund to help affected customers fairly than relaunching its cash markets and persevering with growth.
The protocol will keep its DeFi Spring, restoration, and kSTRK portal for customers to unstake or declare funds. The workforce continues to work with zeroShadow to trace down misplaced funds, with any recoveries to be directed to the person restoration fund.
zkLend additionally plans to open-source its audited and up to date codebase within the coming weeks for events to proceed growth.
“We’ll proceed to stay on-line and dedicated to the restoration of stolen funds by way of any means essential,” the workforce said. “We’ve got been proud to be a part of Starknet’s journey from its early beginnings and to witness its progress and evolution firsthand.”
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