Lido: rsETH risk exposure is approximately US$21.6 million, and 3 million U.S. head loss protection will be activated if necessary

Lido posted on the X platform that its EarnETH vault was affected by the theft of 116,500 rsETH (approximately US$292 million) from the KelpDAO Cross-Chain Bridge on April 18.<br /> EarnETH holds approximately US$21.6 million in rsETH exposure through its rsETH/ETH leveraged position on Aave, which represents approximately 9% of the vault's total assets. Currently, the EarnETH team is actively deleveraging to reduce risks, and the results depend on the final decisions of Kelp, LayerZero and Aave on loss allocation and bad debt treatment.<br /> Lido further stated that EarnETH has a US$3 million "first loss protection mechanism" funded by the LidoDAO treasury, which will be used to cover losses if necessary. At present, the treasury has suspended redemption processing to assess losses. This incident does not affect stETH and wstETH, and the Lido core pledge agreement is not involved.