Lido: EarnETH vault holds approximately $21.6 million in rsETH exposure, with first-loss protection mechanisms in place.

CoinFeed reported on April 21 that Lido stated on its X platform that the Kelp DAO cross-chain bridge attack resulted in the theft of approximately 116,500 rsETH (approximately $292 million), and the rsETH market on lending platforms such as Aave was subsequently frozen. Lido's EarnETH vault directly holds approximately 9% of the rsETH exposure (approximately $21.6 million) through an rsETH/ETH leveraged position on Aave. The EarnETH team is actively deleveraging and reducing the risks of various strategies. The final outcome of this rsETH position depends on the decisions of Kelp, LayerZero, and Aave. A $3 million "first-loss protection mechanism" provided by the Lido DAO vault will be used to cover vault losses if necessary. Currently, deposits and withdrawals to EarnETH are suspended to ensure fair processing.