Lido Lend Exit Plan Would Use Borrower Collateral to Fund Withdrawals
Edited by Steinar Vigdel Kolnes, Editor, Oslo
A proposed Lido Lend exit mechanism would draw on borrower collateral, starting with positions closest to liquidation, according to The Defiant.
A plan for withdrawals from Lido Lend would use collateral backing borrower positions, The Defiant reported. The mechanism would prioritize loans closest to liquidation.
Borrowers whose collateral is used would also have their outstanding debt reduced. The approach links lender withdrawals to adjustments in existing borrowing positions.
Key details remain unclear, including which healthy loans would qualify and how lenders would ultimately receive ETH. The available report does not specify those parts of the proposed process.
Source: The Defiant
