Lido: rsETH Theft Incident Affects EarnETH, Exposure Approximately $21.6 Million, Deposits and Withdrawals Suspended

Odaily News Lido posted on platform X stating that on April 18th, the Kelp cross-chain bridge was attacked, resulting in the theft of approximately 116,500 rsETH (worth about $292 million). Subsequently, the related assets were frozen on lending markets such as Aave.

Its treasury product EarnETH has approximately a 9% risk exposure (about $21.6 million) through leveraged rsETH/ETH positions on Aave. Meanwhile, rising borrowing utilization is creating cost pressure on other strategies. The team is advancing deleveraging and reducing overall risk.

Lido pointed out that the final impact of the rsETH positions depends on the subsequent handling by Kelp, LayerZero, and Aave, including loss sharing, asset recovery, and bad debt processing.

Regarding risk mitigation, EarnETH can, if necessary, activate a $3 million "first-loss protection mechanism" (provided by the DAO treasury) to cover losses. The specific scale of its use is still pending further evaluation. Currently, the treasury has suspended deposits and withdrawals to ensure fairness and complete loss assessment. If the handling process is slow, redemption channels may be reopened based on the worst-case loss expectations.

The official emphasized that stETH and wstETH are unaffected, and the core staking protocol was not involved in this incident.