Recently, I noticed that Lido Finance has taken an interesting action regarding the Kelp incident. In short, the Lido DAO is considering a temporary proposal to adjust the protection mechanism for the EarnETH treasury in response to this event.

The background is as follows: Lido Finance's EarnETH originally set a 1% loss protection trigger threshold, meaning protection only activates if the treasury incurs losses exceeding 1%. However, according to estimates from Lido contributors, if DeFi United's rescue operation successfully fills the rsETH gap, the actual loss from this incident could be between 400 and 600 ETH, which is actually below the 1% threshold.

Therefore, the proposal from Lido Finance is: to protect user funds, maintain brand reputation, and reduce legal risks, they will make a one-time exception for the Kelp incident by temporarily lowering the trigger threshold for initial loss protection. But this is only a special arrangement for this incident and does not alter the general 1% rule.

Interestingly, this proposal is marked as time-sensitive because the rsETH incident is expected to be resolved within 5 to 10 days. It seems that Lido Finance has made a relatively pragmatic choice between risk control and user protection—neither changing the overall rule framework nor failing to provide additional safeguards during this special moment. This approach is quite typical for DeFi projects—flexibly adjusting in emergencies while maintaining rule consistency.