Lido: rsETH has a risk exposure of approximately $21.6 million, and $3 million in first-loss protection will be activated if necessary
Foresight News reported that Lido tweeted that its EarnETH treasury was affected by the theft of 116,500 rsETH (approximately $292 million) through Kelp DAO’s cross-chain bridge on April 18. EarnETH holds approximately $21.6 million in rsETH risk exposure, about 9% of the treasury’s total assets, through an rsETH/ETH leveraged position on Aave. The EarnETH team is currently actively deleveraging to reduce risk, with the outcome depending on the final decisions of Kelp, LayerZero, and Aave regarding loss sharing and bad debt handling. Lido further stated that EarnETH has a $3 million “first-loss protection mechanism” funded by the Lido DAO treasury, which will be used to cover losses if necessary. Currently, the treasury has suspended subscription and redemption processing to assess the losses. This incident does not affect stETH and wstETH, and Lido’s core staking protocol is not involved.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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