Beginning on November 5, 2026, Lido’s EarnETH and EarnUSD vaults will benefit from two layers of loss protection. Firelight, an onchain protection protocol, will absorb eligible losses first, up to caps of 5.7% of EarnETH’s total value locked, approximately $12.1 million, and 8% of EarnUSD’s TVL, approximately $4 million. These caps reset every 30 days and apply at the vault level, while Lido DAO’s $5 million first-loss fund will cover any remainder if losses exceed Firelight’s capacity. The two vaults are curated by Mellow and launched in March 2026 as part of Lido’s expansion of its Earn product lineup. During the Kelp DAO incident in April and May 2026, Lido DAO’s mechanism prevented EarnETH depositors from incurring losses.
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