Lido Responds to Kelp Security Incident: Only 9% Exposure of EarnETH Affected, stETH Unscathed

Lido provided an update on the Kelp security incident on the X platform, stating that its Earn series vaults are working with management to address the issues, which involve two major risk points: exposure of rsETH and liquidity strain in the lending market. Currently, the core staking protocol remains unaffected, with both stETH and wstETH maintaining safety and stability. Only the EarnETH vault has approximately 9% TVL exposure to rsETH, and related deposits and withdrawals have been suspended by management pending a solution. Lido noted that approximately $70 million in ETH has been recovered from the previous attack, and efforts to restore assets and allocate losses are ongoing. Other vaults, including DVV and EarnUSD, have not been affected and are operating normally; however, the GGV sub-vault is experiencing negative yields due to a combination of cyclical staking strategies and rising lending rates, but adjustments are being made.