Lido discloses impact of Kelp security incident: Approximately 9% of EarnETH exposure affected, core staked assets remain safe

Odaily Planet Daily reports that Lido has released the latest update on the Kelp security incident, stating that its Earn series vaults are working with management on problem resolution, involving two main risk points: rsETH exposure and liquidity tightness in the lending market. Lido emphasizes that the core staking protocol has not been affected, and both stETH and wstETH remain secure and stable. Currently, only the EarnETH vault has approximately 9% of its TVL exposed to rsETH. Related deposits and withdrawals have been suspended by management, pending a solution.

Approximately $70 million worth of ETH from the earlier attack has been recovered, and subsequent asset recovery and loss distribution are still in progress. To address liquidity pressure, management has reduced leverage and optimized position structures, significantly decreasing wETH debt exposure. If losses ultimately occur, EarnETH will activate a "$3 million first-loss protection mechanism" (borne by the DAO). As for other vaults, DVV and EarnUSD remain unaffected and operate normally; a sub-vault of GGV is currently experiencing negative yields due to a combination of a looping staking strategy and rising lending rates, but adjustments are ongoing. Withdrawal requests previously submitted by users will be processed based on valuations prior to the incident.