Lido launched the lending protocol Lido Lend based on Morpho Blue, scheduled to go live in the fourth quarter

Lido announced the launch of the lending protocol Lido Lend, which is built on a modified fork of Morpho Blue and is planned to go live in the fourth quarter of 2026. Lido stated that the platform is aimed at long-term passive investors, with the goal of enhancing returns while controlling risks. Lido is a decentralized liquid staking protocol on Ethereum that issues stETH.

Lido Lend has three core designs: first, an isolated market structure where each lending market operates independently, so issues in a single market do not affect others; second, a deposit screening mechanism to prevent bad collateral and funds that have been hacked from entering the system; third, a reliable lender exit mechanism, allowing lenders to smoothly redeem their funds even when the market reaches full utilization.

The market will focus on low-volatility blue-chip asset trading pairs, such as stETH/ETH. The protocol is intended to be governed by Lido DAO, but the relevant governance arrangements have not yet been finalized and will await future DAO votes. Morpho Blue was launched in 2024, supporting users in creating isolated markets with specific collateral and lending parameters through a simple, immutable framework.