TREE NEWS reports: Lido’s proposed lend exit plan would tap borrower collateral to fund withdrawals, starting with positions nearest liquidation and reducing their debt first. The plan does not specify eligibility for healthy loans or the lender’s route to ETH. No date or formal announcement was provided.
Lido Lend Exit Plan Would Seize Borrower Collateral for Withdrawals
The design choice to start with positions nearest liquidation is the telling detail: it prioritizes the most fragile debt, which limits contagion risk but also concentrates the unwind where losses are most likely. The unresolved questions are the substantive ones — how healthy loans are treated, and how the lender converts to ETH — and neither is addressed. Until eligibility rules and a conversion route are specified, the plan remains a framework rather than an executable mechanism. Whether the silence on healthy positions reflects an unfinished design or a deliberate sequencing is the open question.
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