Lido Adjusts EarnETH Fee Structure: Management Fee Drops 80% as Performance Fee Share Increases

Odaily 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 framework, EarnETH fees will be adjusted from the previous "1% AUM fee + 10% performance fee" to a maximum of "0.5% AUM + 20% performance fee." The new fee structure will launch with "0.2% AUM + 15% performance fee," with any future changes 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 tie protocol revenue to the Vault's actual performance. All current applicable fees will be transparently displayed on the EarnETH Vault interface.

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