Lend, Borrow, and Stake with ZeroLend
A non-custodial lending protocol on Layer 2 — earn interest on deposits, borrow against exotic collateral, and grow with the ZERO token economy.
How It Works
The ZeroLend platform follows a straightforward flow common to decentralized finance money markets, with a few meaningful additions for Layer 2 deployment.
Connect Your Wallet
Link any EVM-compatible wallet (MetaMask, WalletConnect, etc.). Make sure you are on a supported L2 — Linea or zkSync Era both work.
Supply Assets
Deposit tokens into a lending pool. Your balance earns a variable APY and accumulates ZeroLend incentive points from block one.
Borrow Against Collateral
Use your supplied assets as collateral to borrow stablecoins or other tokens. Choose variable or stable rate. The health factor shows liquidation risk at a glance.
Stake ZERO for veZERO
Deposit ZERO tokens or ZERO/ETH LP into the staking module. You receive veZERO — a non-transferable position that earns protocol revenue and governs parameter changes.
Monitor & Manage
The Dashboard shows your net worth, open positions, and health factor in one place. Repay, withdraw, or adjust collateral any time with no lock-up period on lending positions.
Why ZeroLend
Most lending protocols were designed for Ethereum mainnet in 2020–2021, before L2 infrastructure matured. The ZeroLend protocol was built from the start with Layer 2 cost structures in mind — gas on Linea and zkSync Era runs a fraction of mainnet, which changes the math for small depositors significantly.
Older platforms also restrict collateral to a short list of blue-chip tokens. ZeroLend's isolated risk pools allow exotic and long-tail assets to serve as collateral without putting the whole market at risk. Think of it as the difference between a one-size-fits-all bank and a more specialized lender.
Lower Transaction Costs
L2 fees make deposits below $500 economically viable — a threshold that simply did not work on mainnet during high congestion periods.
Broader Collateral List
Isolated markets let exotic assets be listed without contaminating core pools. Protocols like Uniswap list hundreds of tokens; ZeroLend extends that same breadth to lending.
Revenue Sharing for Stakers
Unlike many governance tokens that confer voting rights alone, veZERO carries direct economic rights. Protocol fees flow back to stakers on a continuous basis.
Transparent & Audited Code
The team behind ZeroLend publishes all smart contract code on GitHub. Multiple independent audit firms have reviewed the core contracts. See the GitHub repository for details.
Key Features
Variable & Stable Borrow Rates
Borrowers choose between a rate that fluctuates with market utilization or a pseudo-stable rate that changes less frequently — useful for carry trades with predictable cost structures.
Isolated Risk Pools
Each exotic asset market operates in its own pool. A price crash in one does not cascade across all collateral types. Standard money-market design refined for long-tail token risk.
veZERO Governance
Vote on risk parameters, fee allocation, and new market listings. veZERO weight scales with stake size and duration, rewarding long-term alignment over short-term speculation.
Incentive Points System
Active lenders and borrowers accumulate protocol points alongside standard interest. Points may translate into future token distributions or partner-protocol airdrops — a design inspired by Uniswap liquidity mining but extended to both sides of the market.
sdZERO via StakeDAO
Users who stake through StakeDAO's sdZERO product get all veZERO economic benefits in a liquid, tradable token. No permanent lock-up required. sdZERO trades on secondary markets independently.
Multi-Network Deployment
The protocol runs on Linea and zkSync Era, two networks that have adopted EIP-4844 blob data to further reduce costs. Additional L2 deployments are in testing. More at Ethereum's scaling documentation.
Crypto Card Integration
ZeroLend's Card product allows users to spend borrowed funds directly — bridging the gap between on-chain collateral and real-world purchasing without selling underlying assets.
ZeroLend by the Numbers
These figures reflect approximate protocol state as of early 2025. Markets fluctuate; always check the live dashboard for current data.
FAQ
More detailed answers are available on the ZeroLend Questions page and in the official docs.
What is ZeroLend?
ZeroLend is an open-source, non-custodial lending and borrowing protocol operating on Layer 2 networks. Lenders deposit assets to earn interest; borrowers access liquidity against collateral at variable or stable rates. The protocol has been live since 2023 and is governed by veZERO holders.
How do I start lending on ZeroLend?
Connect a compatible Web3 wallet, navigate to the Markets page, select an asset, enter the amount you want to supply, and confirm the transaction. Interest accrues automatically from that point forward. There is no minimum deposit size beyond the network's gas cost.
Is ZeroLend safe and audited?
The ZeroLend platform's smart contracts have been reviewed by independent security auditors, and the code is publicly available on GitHub for community inspection. That said, DeFi protocols carry inherent risks — smart contract bugs, oracle failures, and liquidation gaps included. Users should review the documentation before depositing significant funds.
What networks does ZeroLend support?
Currently Linea and zkSync Era. Both are EVM-compatible Layer 2 networks with low fees. The team has indicated additional L2 deployments are in the pipeline. All networks benefit from EIP-4844 blob data availability, which reduces the cost of L2 data posting to Ethereum significantly.
What is the ZERO token?
ZERO is ZeroLend's native governance and utility token. Staking ZERO or ZERO/ETH LP tokens produces veZERO, which grants a share of protocol fees and future emissions. The token ticker is ZERO and it is listed on several decentralized exchanges.
How does staking work on ZeroLend?
Users deposit ZERO or zLP (ZERO/ETH LP) into the staking contract. In return they receive veZERO. The veZERO position earns a continuous share of protocol revenue, token emissions, and — historically — airdrops from partner protocols. Staking duration affects the weight of your veZERO within governance votes.
Can I borrow on ZeroLend if I only hold exotic assets as collateral?
Yes — that is one of the core use cases the protocol was designed for. Isolated risk pools mean each exotic asset has its own borrow cap and liquidation parameters. This structure keeps unusual collateral from affecting the stability of mainstream lending pools.
Why should I use ZeroLend instead of other lending protocols?
Three practical reasons. First, L2 fees make the protocol usable with smaller capital than mainnet alternatives. Beyond fees, the ZeroLend platform supports a wider collateral list than most competitors. And revenue sharing through veZERO gives token holders a tangible return that pure governance tokens rarely offer. Learn more on the About page.
What is veZERO?
veZERO is the vote-escrowed ZERO token. It is not transferable — it represents a staked position, not a freely traded asset. Holders direct governance votes on protocol parameters such as collateral factors, fee splits, and new market listings. Economic rights include a pro-rata share of fees generated across all ZeroLend deployments.
How does ZeroLend handle liquidations?
When a position's health factor falls below 1.0 — driven by price movements or interest accrual — any address can trigger a liquidation. The liquidator repays up to 50% of the outstanding debt and receives the equivalent collateral at a liquidation bonus discount. This keeps the protocol solvent without requiring a central backstop.
What is sdZERO and how does it differ from veZERO?
sdZERO is issued by StakeDAO when users lock ZERO through its platform. It confers the same economic rights as veZERO — revenue share, emissions, potential airdrops — but remains a liquid, tradable ERC-20 token. If you need flexibility to exit, sdZERO is the practical choice. Direct veZERO is better if you plan to participate actively in governance votes.