Lido Suspends EarnETH Vault Redemptions Following KelpDAO Bridge Hack

Lido has temporarily halted redemptions from its EarnETH vault due to exposure to approximately $21.6 million of rsETH linked to KelpDAO's $292 million bridge hack. According to NS3.AI, the rsETH is part of a leveraged rsETH/ETH position on Aave, accounting for about 9% of the vault's total assets. Lido has assured that a $3 million first-loss protection mechanism is in place to cover potential losses if necessary. The incident does not impact stETH, wstETH, or the core Lido staking protocol.