Lido Lend: Security-First Lending
Lido Lend
Lido contributors are unveiling the development of ‘Lido Lend’, a new decentralized lending market, built on a modified fork of Morpho Blue, designed with a novel set of security-forward safeguards and utilities that benefit both lenders and borrowers.
Lido Lend is built for lenders who are long-term, passive holders of on-chain assets looking for rewards, without exposure to hidden risks. It is designed around isolated lending markets and proposed to be governed by the Lido DAO (pending acceptance via governance vote). Every market is scoped so that lenders have clarity around the rules of the market, access to reliable exits during full utilization or liquidity crunches, and deposit screening mechanisms which seek to guard lenders from bad collateral.
Lido Lend applies the same opinionated, security-first approach that made stETH the bedrock collateral of Ethereum DeFi, and draws on Lido contributors’ six years of building critical infrastructure with zero major security incidents.
Motivation
Over the past year, incidents across lending markets have created what Lido contributors see as an opportunity for an opinionated and hyper-resilient spin on lending, purpose-built for looping on one side and conservative lenders on the other.
The core principles shaping the Lido Lend approach are:
- The system should offer protections that close major attack vectors, e.g. through screening and filtering of hacked funds, and through a more deliberate approach to asset selection and separation.
- Lending should be safe and dependable, following a “set it and forget it” approach, with high liquidity and reliable exit paths across market conditions.
- Markets should be focused on blue-chip assets, pairs should be price-correlated (e.g. stETH / ETH) to temper potential volatility.
- Borrowing should follow clear and predictable rules, so even under stressful market conditions extended looping positions can be unwound.
Lido Lend is not designed as a general-purpose pooled lending solution, but rather as a hyper-secure solution for the specialized needs of professional borrowers and risk-averse lenders, intended to complement current market solutions.
Why Lido?
Lido Staking is one of the most battle-tested protocols on Ethereum, with more than $25B staked in the form of stETH, novel DeFi primitives across Lido Earn and stVaults, and zero major security incidents since inception. This is the outcome of a security, transparency, and trust model that extends to all products under the Lido banner. With six+ years building critical onchain Ethereum infrastructure, Lido contributors have a proven operational track record. It’s time to bring this confidence to decentralized lending markets.
Next Steps
Lido contributors will share details of the unique features that differentiate Lido Lend over the next few weeks, and publish the detailed technical specifications, market parameters, and audit reports in a separate post in this thread, ahead of the relevant governance votes for launch and acceptance of the protocol by the DAO.
Low-risk DeFi is what Lido builds best, and Lido Lend complements both the stETH flywheel as well as Lido Earn. The synergy between these products opens a new growth vector for the Lido ecosystem, giving onchain natives everywhere a broader path to earn rewards in a user-forward and security-first manner. Lido Lend is coming this quarter.
Feedback and questions are welcome in this thread.