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Lido releases KelpDAO incident update: All losses of EarnETH users are borne by the Lido Earn mechanism
BlockBeats News, May 7 — Lido Finance released an update on the KelpDAO attack incident.
On April 29, Lido DAO voted to make a one-time donation of 2,500 stETH to the DeFi United bailout plan for rsETH incident relief, and this transfer was completed last week.
On May 6, according to the established recovery plan, Aave fully liquidated the attacker’s rsETH positions on Ethereum and Arbitrum, with the collateral after liquidation held by the Recovery Guardian, and no other users were affected.
On May 7, the Lido Snapshot vote reached the quorum and officially approved the first loss protection mechanism for EarnETH, which provides full coverage when the loss rate is below 1%. All losses of EarnETH users will be fully borne by the Lido Earn mechanism.
The EarnETH vault operation is expected to resume immediately after the Kelp protocol unpauses, with a short wait for user funds to be unfrozen; during this period, EarnETH and EarnUSD vaults will continue generating revenue.
Lido thanks the community for their patience and support, and will continue to provide updates on progress.