Lido is getting into lending itself.
It announced Lido Lend, a lending protocol built on Morpho and designed specifically for ETH staking loops, with a target launch in the fourth quarter of this year.
Staking loops essentially involve using staked assets as collateral to borrow assets, then staking those assets in turn to create a leveraged loop. Until now, the lending layer has relied mainly on third-party protocols.
Now the largest staking provider is stepping in directly.
Two details in Lido’s current design goals are worth noting: collateral selection and “reliable exits.”
That’s because the real risk of staking loops isn’t just how much you can borrow, but whether you can exit smoothly when markets become volatile.
However, the DAO vote hasn’t taken place yet, and the technical details haven’t been disclosed. The fourth quarter is only a target, so this shouldn’t be treated as a product that has already launched.
But if it does launch, it could mean that the lending layer for staking loops shifts from third-party infrastructure to a core component controlled by Lido itself.
Leverage is easy to add; the real challenge is exiting. And whoever controls the exit rules controls part of the infrastructure’s power.
It announced Lido Lend, a lending protocol built on Morpho and designed specifically for ETH staking loops, with a target launch in the fourth quarter of this year.
Staking loops essentially involve using staked assets as collateral to borrow assets, then staking those assets in turn to create a leveraged loop. Until now, the lending layer has relied mainly on third-party protocols.
Now the largest staking provider is stepping in directly.
Two details in Lido’s current design goals are worth noting: collateral selection and “reliable exits.”
That’s because the real risk of staking loops isn’t just how much you can borrow, but whether you can exit smoothly when markets become volatile.
However, the DAO vote hasn’t taken place yet, and the technical details haven’t been disclosed. The fourth quarter is only a target, so this shouldn’t be treated as a product that has already launched.
But if it does launch, it could mean that the lending layer for staking loops shifts from third-party infrastructure to a core component controlled by Lido itself.
Leverage is easy to add; the real challenge is exiting. And whoever controls the exit rules controls part of the infrastructure’s power.