Lido has reported that its exposure to the Kelp incident is confined to its EarnETH vault, which holds about 9% of its total value locked in rsETH. The broader Lido staking protocol remains unaffected. Approximately $70 million in ETH linked to the incident has been recovered, with ongoing efforts to address asset recovery and lending-market stress. The incident created two issues for Lido Earn vaults: direct rsETH exposure and a liquidity crunch in lending markets. The EarnETH vault has paused deposits and withdrawals as curators work to reduce leverage and manage borrowing costs. Lido Labs has proposed allocating up to 2,500 stETH to mitigate the rsETH deficit. Lido has implemented a $3 million DAO-funded buffer to protect users from potential losses. Other vaults, including DVV, GGV, and EarnUSD, remain unaffected by the incident, with normal operations continuing. Further updates are expected as the resolution process progresses.