Lido has announced that the Snapshot vote to authorize EarnETH's first-loss protection coverage has reached quorum, ensuring full coverage for user losses below the 1% threshold. This follows the recent Kelp security incident, where 2,500 stETH were transferred as part of the DeFi United relief initiative.
In response to the incident, the attacker's rsETH positions on Aave's Ethereum and Arbitrum networks have been liquidated according to Aave's recovery plan, with proceeds now managed by the Recovery Guardian. Lido confirmed that once the Kelp protocol lifts its suspension, operations for the EarnETH vault will resume, allowing normal deposit and withdrawal activities. Both EarnETH and EarnUSD vaults will continue to generate yields during this period.
Lido Approves EarnETH Coverage Following Kelp Security Incident
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