Lido Lend Exit Plan Would Tap Borrower Collateral for Withdrawals

Lido is proposing an exit plan for its lending product that would tap borrower collateral to fund withdrawals, starting with positions closest to liquidation and reducing their debt first. Details remain unspecified, including eligibility for healthy loans and how the lender will route funds to ETH. Traders holding LDO or using Lido's lending market should watch for clarity on whether healthy borrowers could also face collateral seizure, which would affect risk assessment for leveraged ETH positions.