Lido Discloses Impact of Kelp Security Incident: Approximately 9% of EarnETH's Exposure Affected, Core Staked Assets Remain Secure

Odaily reported that Lido has released the latest update regarding the Kelp security incident, stating that its Earn series vaults are working with managers to address the issue. This involves two major risk points: rsETH exposure and liquidity strain in the lending market. Lido emphasized that the core staking protocol remains unaffected, with stETH and wstETH both staying 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 the manager pending a solution.

In the previous attack, approximately $70 million in ETH has been recovered, while subsequent asset recovery and loss distribution are still underway. To address liquidity pressure, the 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 operating normally; the GGV sub-vault is currently experiencing negative returns due to a combination of its loop staking strategy and rising borrowing rates, but ongoing adjustments are being made. Withdrawal requests previously submitted by users will be processed based on valuations made prior to the incident.