Lido contributors propose Fallback Exits to let lenders withdraw borrower collateral before liquidation

Lido Lend, a proposed lending protocol built on Morpho Blue, introduced Fallback Exits to allow ETH lenders to withdraw borrower collateral to cover shortfalls before liquidation. In the ETH/wstETH example, lenders supply ETH while borrowers pledge wstETH. The design prioritizes borrowers near liquidation loan-to-value ratios, though final eligibility rules and valuation methods remain unspecified.