Lido Earn’s new safety net still leaves depositors on the hook for losses

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Lido Earn integrated the onchain protection protocol Firelight on Nov. 5, 2026, allowing eligible, approved losses to be absorbed before the DAO buffer. According to Lido, combined protection could reach approximately 7.2% of EarnETH assets and 12.1% of EarnUSD assets, subject to conditions and available capital. Firelight can cover up to 5.7% of EarnETH’s total value locked and 8% of EarnUSD’s during each 30-day period, while Current Meta Treasury pays the premiums separately. The DAO mechanism can then burn some of its shares once a loss of at least 1% is confirmed, but losses exceeding limits, falling outside coverage or exceeding available capital remain with depositors.

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Telemac
Telemachttp://cryptoinfo.ch
Passionné de nouvelles technologies, j’explore l’univers de la blockchain et des cryptomonnaies pour partager l’actualité et les innovations du secteur.

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