Lido Releases Kelp Security Incident Update: EarnETH First-Loss Protection Approved and Operations to Resume

Lido Releases Kelp Security Incident Update: EarnETH First-Loss Protection Approved and Operations to Resume

2026-05-07 21:57View Original

ChainThink message, May 7th, according to the official announcement, Lido has released an update on the Kelp security incident: the Snapshot vote to authorize EarnETH first-loss protection coverage (below the 1% threshold) has reached quorum, meaning EarnETH users' losses will be fully covered by Lido Earn's first-loss mechanism.

Last week, as part of the "DeFi United" relief initiative, 2,500 stETH have been transferred;

The attacker's rsETH positions on Aave Ethereum and Arbitrum networks have been liquidated in accordance with Aave's recovery plan; the recovered collateral is now managed by the Recovery Guardian.

Lido states that once the Kelp protocol is unpaused, operations for the EarnETH vault will resume, allowing users to deposit and withdraw normally, with losses compensated under the first-loss mechanism. Both the EarnETH and EarnUSD vaults continue generating yield during this period.

Disclaimer: Contains third-party opinions, does not constitute financial advice

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