PANews
PANews|4月 29, 2026 08:36
[Lido Proposes Temporary Reduction of EarnETH Vault's First Loss Protection Threshold to Address Kelp Incident Losses] Lido Finance disclosed on the X platform that Lido DAO is considering a proposal to temporarily lower the first loss protection trigger threshold for the EarnETH vault from 1% in response to the Kelp incident. Currently, Lido EarnETH's protection mechanism is only activated when vault losses exceed 1%. However, Lido contributors estimate that if the DeFi United rescue operation successfully fills the rsETH gap, the actual loss may range between 400 to 600 ETH, which is below the 1% threshold. To protect users, maintain the brand, and reduce legal risks, the proposal suggests making a one-time exception for the Kelp incident rather than modifying the general 1% rule. The proposal is time-sensitive, as the rsETH incident is expected to be resolved within 5 to 10 days.
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