Lido Lend Proposes Fallback Exits for Lender Protection
Current overview (not historical)
Lido Lend has proposed a Fallback Exits design that would allow lenders to recover funds using borrower collateral before liquidation. The proposal, derived from a Morpho Blue fork, is currently in technical specification and governance audit. The mechanism prioritizes borrowers near their loan-to-value ratio, enabling lenders to claim borrower collateral to cover shortfalls, though this results in lenders initially holding staked assets that must later be exchanged for ETH.
Written with AI from the reporting · updated 10/21/2026
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- 1Unclassified fact stationOct 21, 20:30single sourcereport-time onlyrevised
Lido Lend Fallback Exits 设计提议让 ETH 借款人在清算前通过抵押品提前退出
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- Subject:
- lido
- Action:
- proposed Fallback Exits design
- Object:
- ETH lenders can withdraw borrower collateral to cover withdrawal shortfalls
- Occurred (fact side):
- not recorded
- Published (valid side):
- Oct 21, 19:50
- First seen (known side):
- Oct 21, 20:30
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- CryptoSlateRelated fact: single sourceFact occurrence time unverifiedSource report revisedLido contributors propose Fallback Exits to let lenders withdraw borrower collateral before liquidation
Report first recorded Oct 21, 20:30
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.
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