Zerobase Crisis Averted: Mirror Tang Injects $90M After Withdrawal Frenzy

Zerobase Founder Mirror Tang Calms Investors Amid Withdrawal Panic, Injects $90 Million to Stabilize Platform

The fast-moving world of decentralized finance faced another major stress test this week as Zerobase, a rising DeFi platform, was hit by a wave of panic withdrawals following online rumors about liquidity shortages and instability tied to the USDe stablecoin depeg.

In response, Mirror Tang, founder of Zerobase, took swift and public action to reassure users that the platform remains solvent and operational. Within hours, Tang announced a $90 million liquidity injection to stabilize withdrawals and restore user confidence, effectively calming fears of a full-blown liquidity crisis.

Rumors Ignite Panic Across Crypto Circles

The crisis began on October 10–11, 2025, when speculation spread across social media and crypto forums suggesting that Zerobase was on the verge of liquidation. Posts on X (formerly Twitter) and Telegram claimed that the platform’s liquidity pools were drying up, sparking a wave of emergency withdrawals from concerned users.

Source: Mirror Tang X

As the rumors intensified, Zerobase’s customer support channels were flooded with messages from worried investors trying to confirm whether the platform remained solvent. The sudden rush of withdrawals briefly strained the platform’s liquidity, amplifying the perception of instability.

To address the situation, Zerobase’s official team issued a statement in its Discord community, assuring users that “the platform is fully operational and all funds remain secure.” This early communication helped slow the panic, but uncertainty persisted until Tang’s direct intervention.

Founder Mirror Tang Steps In to Reassure Users

In a move that distinguished Zerobase from many past crypto collapses, Mirror Tang responded publicly and decisively. Writing on X, Tang acknowledged the withdrawal surge and encouraged users who felt uneasy to go ahead and withdraw their funds immediately.

“Everyone who wants a hasty withdrawal, go ahead — I will contribute liquidity to the pool right now,” Tang posted.

True to his word, Tang personally oversaw a liquidity top-up exceeding $90 million, sourced from both company reserves and institutional partners. His transparency and immediate action were seen as a critical turning point, preventing the panic from spiraling into a full-blown crisis.

Industry analysts say Tang’s response was “textbook crisis management”, emphasizing both confidence and accountability — a rare combination in crypto markets often plagued by opacity.

Clearing Up Confusion About Zerobase’s Mechanism

Adding to the panic were widespread misunderstandings about Zerobase’s stablecoin arbitrage feature, which many users believed had already been activated and might be responsible for liquidity shortages.

The company’s official website describes its model as one that converts stablecoins like USDT, USDC, and DAI into USDe and uses them for arbitrage opportunities across DeFi platforms. However, Tang clarified that the feature has not yet gone live, meaning no funds had been used for arbitrage at the time of the panic.

Instead, the temporary shortage resulted from a concentration of instant withdrawal requests — not any underlying insolvency or system flaw.

“This was purely a liquidity mismatch caused by market fear, not a structural failure,” Tang explained during a live Spaces session.

What Triggered the Panic: The USDe Depeg and Market Crash

The broader market backdrop added fuel to the fire. On October 11, 2025, the global crypto market experienced one of its steepest single-day crashes in years, following U.S. President Donald Trump’s announcement of a 100% tariff on Chinese imports.

This shock triggered massive liquidations exceeding $19 billion, with many leveraged traders wiped out across exchanges. During this period, the USDe stablecoin briefly lost its peg, falling to $0.94 before rebounding.

The combination of macro fear, leverage wipeouts, and stablecoin volatility created a perfect storm — and Zerobase, still in its growth phase, became an unintended casualty of market panic.

Zerobase’s Recovery Plan and Rebuilding Trust

To restore stability, Mirror Tang outlined a series of immediate and long-term measures designed to strengthen Zerobase’s liquidity framework and risk management:

1. $90 Million Liquidity Injection: Funds were added to the instant withdrawal pool, ensuring all users could process redemptions without delay.

2. Live Transparency Sessions: Tang hosted multiple live Spaces discussions, answering community questions in real-time to restore confidence.

3. Withdrawal Guidance: Users were encouraged to use instant withdrawals instead of 7-day locked redemptions to avoid unnecessary stress on the system.

4. System Audit and Reporting: Zerobase committed to releasing a public liquidity report in the coming weeks, detailing asset backing and fund flows.

By the following day, Zerobase reported that 95% of pending withdrawals had been successfully processed, and transaction queues were back to normal levels.

Market observers praised the team’s quick action, contrasting it with previous crises such as FTX and Celsius, where management remained silent until it was too late.

Community Reaction: Relief and Renewed Optimism

User sentiment began improving shortly after Tang’s announcement. Many praised Zerobase’s openness and rapid response. On-chain data showed funds flowing back into the platform by late Saturday, with several major investors redepositing stablecoins into liquidity pools.

Crypto analyst Eleanor Wu commented,

“This incident could have been another meltdown like LUNA or FTX. But the founder’s hands-on approach turned it into a case study in crisis prevention.”

Meanwhile, smaller users on Discord and X echoed similar praise, noting that Zerobase’s willingness to address issues publicly set a new standard for DeFi transparency.

DeFi Lessons: Liquidity, Trust, and Communication

The Zerobase episode highlights a crucial reality of decentralized finance — even well-designed protocols are vulnerable to psychological market contagion. Liquidity crises often start not from insolvency but from fear, spreading quickly in the absence of clear communication.

Mirror Tang’s decision to inject personal and institutional capital immediately prevented what could have been a self-fulfilling collapse. Industry experts argue that this model of proactive liquidity management could serve as a framework for future DeFi operators.

Tang summarized the lesson himself during the closing of the live discussion:

“Crypto is about trust — not just code. If we lose trust, even good systems can fail. My job is to ensure that never happens.”

Looking Ahead: A Stronger Zerobase After the Storm

As of Sunday, Zerobase confirmed full operational status, normal withdrawal speeds, and an expansion of liquidity reserves. Developers are reportedly accelerating work on the platform’s stablecoin arbitrage engine, with a full-scale launch planned before the end of 2025.

The company also announced plans for a real-time dashboard allowing users to track liquidity metrics and transaction volumes directly from the blockchain — a transparency initiative applauded by users and analysts alike.

Despite the chaos, Zerobase appears to have emerged stronger, with community trust intact and market participants viewing it as a resilient DeFi player capable of managing volatility and user panic.

Writer @Ellena

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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