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Lido: rsETH Risk Exposure Around $21.6 Million, $3 Million Front Loss Protection to be Activated if Necessary

2026.04.21 00:01:47

On April 21, Lido said in a social media post that its EarnETH treasury was hit by a theft of 116,500 rsETH (roughly $292 million) via the Kelp DAO cross-chain bridge on April 18. EarnETH holds around $21.6 million in rsETH/ETH leveraged positions on Aave, accounting for roughly 9% of the treasury’s total assets. The EarnETH team is actively deleveraging to reduce risk, with the outcome dependent on Kelp, LayerZero, and Aave’s final decisions on loss sharing and default handling. Lido added that EarnETH has a $3 million “first-loss protection mechanism” funded by the Lido DAO treasury, which will cover losses if needed. The treasury has temporarily paused redemptions to assess the damage. This incident does not impact stETH or wstETH, as Lido’s core staking protocol was not involved.
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