Lido plans Morpho Blue fork ‘Lido Lend’ for new lending protocol in Q4 2026

Lido is getting into the lending business. The project has announced Lido Lend, a decentralized lending market built as a modified fork of Morpho Blue and slated for launch in the fourth quarter of 2026. The pitch is aimed squarely at the cautious crowd. Lido says the platform is designed to boost yield for long-term, passive investors while keeping risk to a minimum. What Lido is actually building Lido Lend will not be built from scratch. It will run as a modified version of Morpho Blue, an existing lending design that supports isolated markets. The announcement came on October 7, 2026. Lido has flagged three main design priorities that set its version apart. The first is isolated market structures. Each lending market stands on its own, so trouble in one pool does not automatically spill into the others. The second is deposit screening. Lido says this feature is meant to guard against bad collateral and hacked funds entering the system. The third is a mechanism for reliable lender exits, even when a market hits full utilization. Why the exit problem matters Full utilization is one of the less glamorous risks in decentralized lending. It happens when nearly all the money deposited...