The Impact of ZeroLend’s Shutdown: 3 Standards to Review Now to Protect Your Assets in DeFi Investing

“The funds you deposited in pursuit of high yields could suddenly become inaccessible one day…”

In the world of cryptocurrency (crypto assets), this anxiety is an ever-present reality. Recently, the decentralized lending platform “ZeroLend” announced the termination of its operations, sending ripples through the investor community. For those venturing into DeFi (Decentralized Finance) to efficiently grow their assets amidst the ongoing weakening of the yen, this news is far from a distant concern. 📈

In this article, Maneko will thoroughly explain why ZeroLend was forced to shut down and what steps we must take to protect our assets. 💡

Why Did the Rising Star “ZeroLend” Run Out of Steam?

ZeroLend initially attracted significant attention by supporting a wide array of chains, but it ultimately concluded that operations were “unsustainable.” There are serious underlying reasons for this that every investor should understand.

• Low Liquidity on Supported Chains: While the platform supported many minor blockchains, they lacked the crucial element: “trading volume (liquidity).” Lending cannot function in a marketplace where there are no buyers or sellers.
• Escalating Maintenance Costs: The cost of managing multiple chains eventually exceeded the revenue generated. The business lost its long-term viability.
• Polarization of the DeFi Market: We are seeing a strong “winner-takes-all” trend where capital concentrates in major protocols, leading to outflows from mid-tier and smaller projects.

This is more than just the failure of a single platform; it is a signal that the market as a whole is demanding “high-quality liquidity.” ⚠️

Investment Strategies to Avoid Failure and “Proactive” Choices

To avoid these risks while steadily growing your assets, it is essential to consolidate your holdings into highly reliable platforms. This is where you should utilize major domestic and international exchanges or tools that boast rigorous screening processes and massive user bases.

The reason Maneko recommends these options is that “liquidity is guaranteed,” even in harsh market environments. Rather than exhausting yourself in high-risk, emerging DeFi projects, the shortest path to long-term success is to first build a solid foundation and prepare to ride the market waves. 📈

The Risk of “Opportunity Loss” if You Don’t Act Now

While you are thinking, “Maybe I’ll do it later,” the market power structure is changing by the minute. As seen in the ZeroLend example, the speed at which unprofitable services are weeded out will only accelerate.

A year from now, an unbridgeable gap will exist between those who moved their assets to a safe place and prepared for proper investment decisions today, and those who did nothing. “Knowing” is not enough; “acting” is the only way to protect your assets from yen depreciation and inflation. 💡

Summary: Start Small and Build a Reliable Environment

There is no 100% safety in investing, but it is possible to minimize risk. Why not take this news as an opportunity to review your portfolio?

I recommend opening a reliable account and preparing to back the “winning horses,” even starting with a small amount. Let’s aim to become investors who stay one step ahead, together with Maneko. ✨

Note: This article is intended for informational purposes only and does not constitute a solicitation or advice for investment. Please make investment decisions at your own discretion.

This article is also available in Japanese.