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📊 Lido Responds to Kelp rsETH Hack: EarnETH Paused, DAO Activates $3M First-Loss Protection
Lido Finance provided an update on Lido Earn vaults following the Kelp incident, noting that the Lido staking protocol, stETH, and wstETH remain unaffected. Key updates include:
- Only the EarnETH vault has exposure to rsETH (~9% of its TVL), and its deposits and withdrawals are currently paused. - If a loss occurs, a $3 million "first-loss protection mechanism" funded by the Lido DAO treasury will be applied by burning the DAO’s vault shares. #hack
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