Lido is developing a decentralized lending market called Lido Lend, according to Odaily. The product is built on a modified fork of Morpho Blue and uses an isolated market structure. Governance of the protocol is intended to sit with Lido DAO, but the plan still requires approval through a governance vote.
The proposed market will be limited to blue-chip assets and is designed to favor correlated pairs such as stETH/ETH. Lido also said it will include a deposit screening mechanism aimed at reducing the risk of poor-quality collateral entering the system.
Lido described the product as something other than a general-purpose pooled lending solution. Instead, it is being positioned for professional borrowers and risk-averse lenders. The team also noted that stETH now has more than $25 billion in staked value and has not recorded a major security incident since launch.
Lido is developing a decentralized lending market called Lido Lend, Odaily reported. The market is built on a modified fork of Morpho Blue and uses an isolated lending market design. It is intended to be governed by Lido DAO, though the proposal still needs to pass a governance vote.
How Lido Lend is being structured
Lido Lend will be limited to blue-chip assets and will encourage correlated trading pairs such as stETH/ETH. The protocol will also include a deposit screening mechanism to guard against poor-quality collateral.
Lido said the product is not a general-purpose pooled lending solution. It is aimed at professional borrowers and lenders with a lower tolerance for risk.
stETH backdrop
Lido said stETH currently has more than $25 billion in staked value and has not seen a major security incident since launch.
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