Lido's proposed exit plan would repay lenders using borrower collateral
Lido has proposed Fallback Exits that would cut debt along with collateral, paying lenders from borrower collateral. Key details are still open, including which positions qualify as healthy and how lenders would get ETH. Traders may want to wait for clarity before reading much into the proposal.
Why it matters
- Fallback Exits would reduce debt alongside borrower collateral, changing how lenders get repaid.
- Eligibility for healthy positions has not been settled yet, so who is affected remains unclear.
- The lender's route to ETH is still unsettled, which leaves the practical outcome uncertain.
What to watch next
Watch for a decision on healthy-position eligibility and the route lenders would use to get ETH.
