Lido Finance has proposed a temporary reduction in the first-loss protection threshold for its EarnETH treasury, currently set at 1%. This move comes in response to the DeFi United rescue effort, which aims to address the rsETH shortfall. Lido estimates that the actual loss from the Kelp incident could be between 400 and 600 ETH, falling below the existing threshold. The proposal, disclosed by Lido DAO, seeks to protect users and mitigate legal risks associated with the incident. The resolution of the rsETH issue is anticipated within 5 to 10 days, during which the adjusted threshold would be in effect.