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The Starknet ecosystem project zkLend announces shutdown and will use remaining funds for user compensation.
The Starknet ecosystem project zkLend announced on social media that it will gradually shut down.
The official stated that this decision is by no means a hasty one. In recent months, the security vulnerabilities encountered by zkLend have severely shaken user confidence, and the recent delisting of the ZEND token from mainstream trading platforms such as certain exchanges has further restricted the token's liquidity and accessibility. These changes have made it difficult for zkLend to effectively allocate resources for new business development.
Given the current situation, zkLend believes that allocating the remaining $200,000 of treasury funds to a user compensation fund is more responsible and practical than restarting the money market or continuing development. The team will remain online and will spare no effort in advancing asset recovery efforts.
The on-chain lending protocol zkLend on Starknet was hacked on February 12, resulting in losses of over $9.5 million.