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The Starknet ecological project zkLend announced its shutdown and will use the remaining funds for user compensation.
On June 25, the Starknet ecosystem project zkLend announced on social media that the project will gradually shut down.
The official stated that this decision is by no means a hasty move. In recent months, the security vulnerabilities encountered by zkLend have seriously shaken user confidence, and the recent delisting of the ZEND token from certain mainstream trading platforms has further restricted the token's liquidity and accessibility. These changes have made it difficult for zkLend to effectively allocate resources to develop new business.
In light of the current situation, zkLend believes that using the remaining $200,000 of treasury funds for a user compensation fund is more responsible and meaningful than restarting the money market or continuing development. The team will remain online and will spare no effort in advancing asset recovery efforts.
Previously, the Starknet on-chain lending protocol zkLend was hacked on February 12, resulting in losses of over 9.5 million dollars.