A governance proposal for Lido Lend highlights critical risks associated with its emergency pause mechanism, warning that an activated pause would block borrower repayments and prevent lenders from exiting their positions while interest continues to accrue.
The proposal further reveals that a separate governance mechanism could render an active pause indefinite, requiring authorized resumption to restore normal protocol operations. These findings underscore potential systemic vulnerabilities in Lido Lend's risk management framework.
Lido Lend Proposal Warns Emergency Pause Could Block Repayments and Trap Lenders Indefinitely
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