Lido has shared new details on Lido Lend, a lending product still under development, highlighting a mechanism called Fallback Exits. According to the project’s post on X, the design gives lenders another way to withdraw when liquidity in the borrowed asset is insufficient. In those cases, lenders can complete all or part of a withdrawal by taking a borrower’s collateral instead of waiting for normal liquidity to return. Lido said the product is being built on a modified version of Morpho Blue and will use isolated lending markets made up of related assets, including pairs such as wETH and wstETH, as well as dollar stablecoins and U.S. Treasury RWA. The team also said that when the Fallback Exits mechanism is triggered, borrowers whose loan-to-value ratios are closest to the liquidation threshold, or LLTV, will be affected first, while their outstanding debt will be reduced accordingly. Technical specifications and market parameters are scheduled to be released within the next two weeks. Lido added that Lido Lend will be deployed on mainnet after it completes the DAO governance process.
Lido said on X that its lending product in development, Lido Lend, will use a mechanism called Fallback Exits.
Under that design, if liquidity in the borrowed asset is not sufficient, lenders can withdraw all or part of their funds by taking a borrower’s collateral, giving lenders an additional exit route.
Lido said Lido Lend is built on a modified version of Morpho Blue and uses isolated lending markets composed of related assets, including wETH and wstETH, as well as dollar stablecoins and U.S. Treasury RWA.
When Fallback Exits are triggered, borrowers with loan-to-value ratios closest to the liquidation loan-to-value threshold, or LLTV, will be affected first. Their outstanding debt will also be reduced accordingly.
Lido said detailed technical specifications and market parameters will be published within the next two weeks. Lido Lend will be deployed to mainnet after the DAO governance process is completed.
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