Lido updates Lido Earn status: EarnETH exposure to rsETH is approximately 9%, with $3 million in first-loss protection activated

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Lido officially releases the latest updates on the Lido Earn library and the Kelp incident. Lido emphasizes that the Lido staking protocol itself remains unaffected, and stETH and wstETH are secure. Regarding the Lido Earn library: 1. Only EarnETH has exposure to rsETH, accounting for approximately 9% of its TVL, and redemptions for this library have currently been suspended; 2. If losses ultimately occur, a $3 million “first-loss protection mechanism” funded by the Lido DAO treasury will be activated, compensating through the destruction of DAO-held shares; 3. In response to liquidity crunches causing soaring lending rates, curators are performing deleveraging operations; 4. The Lido DVV, GGV, and EarnUSD libraries have no exposure to rsETH.

STETH-3.66%
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