Wu said that Lido Earn contributors submitted a proposal on the Lido DAO forum, requesting the DAO to authorize the use of the existing Lido Earn first-loss fund to cover actual losses related to the Kelp incident if the threshold falls below 1%. The proposal states that if the DeFi United rescue plan succeeds, the remaining borrowing interest loss on Lido Earn leveraged staking/re-staking positions is estimated to be about 400 to 600 ETH, which is below the 1% threshold but still substantial. The proposal emphasizes that this authorization applies only to the Kelp incident, does not change the general rule of the 1% threshold, does not add new treasury allocations, and is solely for compensating actual losses, not for subsidizing APY, making up for missed APY, or providing profit support after recovery.

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