Lido adjusts EarnETH fee structure: management fee drops 80% while shifting toward higher performance fee share

Odaily Planet Daily News Liquid staking protocol Lido has announced an update to the EarnETH Vault fee structure, adopting a more flexible performance-linked fee model to reduce user holding costs and strengthen the alignment between yield distribution and product performance.

Under the new plan, EarnETH fees will shift from the previous "1% AUM fee + 10% performance fee" to a maximum "0.5% AUM + 20% performance fee" model. The new fee structure will launch with "0.2% AUM + 15% performance fee," with any future adjustments to be announced separately.

Lido stated that reducing the management fee from 1% to 0.2% will lower the cost of holding EarnETH for users in low-yield environments, while increasing the performance fee share will better align protocol revenue with the Vault's actual performance. All currently effective fees will be transparently displayed on the EarnETH Vault interface.

This adjustment aims to optimize the fee mechanism of the EarnETH yield product, improve fee flexibility, and enhance alignment between users and the product's yield performance.