Lido releases update on the KelpDAO incident: All losses suffered by EarnETH users will be covered by the Lido Earn mechanism.

Mars Finance reported on May 7th that Lido Finance released an update on the KelpDAO attack. On April 29th, Lido DAO voted to donate 2,500 stETH to the DeFi United relief program for the rsETH incident, and this stETH was officially transferred last week. On May 6th, Aave, following the established recovery plan, liquidated all the attacker's rsETH positions on Ethereum and Arbitrum. The liquidated collateral has been handed over to Recovery Guardian for safekeeping, and no other users were affected. On May 7th, the Lido Snapshot vote reached the quorum and officially approved the EarnETH first loss protection mechanism to provide full coverage when the loss rate is below 1%. All losses of EarnETH users will be fully covered by the Lido Earn mechanism. EarnETH vault operations are expected to resume immediately after the Kelp protocol is unsuspended, and user funds will only require a short waiting period to be unfrozen; during this period, EarnETH and EarnUSD vaults will continue to generate yield. Lido thanks the community for their patient support and will continue to provide updates.