Lido says EarnETH vault affected by KelpDAO hack, exposure at $21.6M

Lido (LDO) announced that its EarnETH vault has been affected by the $292 million (116,500 rsETH) hack of KelpDAO's bridge. The vault holds approximately $21.6 million worth of rsETH through a leveraged rsETH/ETH position on the Aave platform, which accounts for about 9% of the vault's total assets. Lido stated that it will use a $3 million first-loss protection mechanism to cover losses if necessary. Redemptions from the vault have been temporarily suspended to determine the extent of the damage. The protocol clarified that the incident has no impact on stETH or wstETH and is unrelated to the core Lido staking protocol.