Lido announced on October 16, 2026 a new feature called Fallback Exits for its lending platform Lido Lend. This function allows lenders to access borrower collateral when regular liquidity runs dry during periods of market stress. Lido Lend will be built on a modified fork of Morpho Blue and operate through isolated markets centered on blue-chip assets such as wETH/wstETH, stETH/ETH and US Treasury-linked tokenized real-world assets. Lido’s stETH product has over 25 billion dollars staked without any significant security breaches. Launch is contingent on Lido DAO approval with a target of Q4 2026.
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