Lido contributors have outlined a new mechanism for Lido Lend that allows lenders to exit positions when loan assets fall short. Under the proposed plan, borrower collateral would be tapped first, prioritizing positions nearest to liquidation.
The approach simultaneously reduces borrowers' outstanding debt alongside their collateral, providing a structured exit path for lenders during asset shortages.
Lido Lend Proposal Would Tap Borrower Collateral to Facilitate Lender Exits During Asset Shortfalls
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