Lido issues update on Kelp security incident: EarnETH first-loss coverage approved and operations to resume

Foresight News reports that Lido has issued an update regarding the Kelp incident: The Snapshot vote authorizing EarnETH's first loss protection coverage (for losses below the 1% threshold) has reached quorum, and losses incurred by EarnETH users will be fully covered by the Lido Earn first loss mechanism. Meanwhile, as part of last week's "DeFi United" relief program, 2,500 stETH have been successfully transferred. The attacker's rsETH positions on the Aave Ethereum and Arbitrum networks have been liquidated in accordance with the Aave recovery plan, and the resulting collateral is now managed by the Recovery Guardian.

Lido stated that once the Kelp protocol lifts its suspension, operations of the EarnETH treasury will resume immediately. At that time, users will be able to deposit and withdraw as usual, losses will be compensated according to the first loss mechanism, and both the EarnETH and EarnUSD treasuries will continue to generate returns during this period.