Lido gives update on KelpDAO fallout, says EarnETH vault has 9% rsETH exposure

Lido Finance has provided an update on the fallout from the KelpDAO exploit, stating that its EarnETH vault has approximately 9% direct exposure to rsETH. Consequently, deposits and withdrawals for the EarnETH vault have been paused while curators address the situation. Lido clarified that its core staking system, including stETH and wstETH, remains unaffected. The KelpDAO exploit, which occurred on April 18, 2026, involved an attacker stealing around $292 million worth of rsETH. Lido is also managing a secondary issue related to increased borrowing costs and liquidity constraints in lending markets, with curators actively reducing leverage and debt. A $3 million first loss protection mechanism funded by the Lido DAO treasury is in place to cover potential losses in the EarnETH vault. The broader market stress stemmed from the attacker using the stolen rsETH to borrow ETH, leading to the freezing of rsETH markets on platforms like Aave. While Lido's DVV and EarnUSD vaults are unaffected, the GGV subvault has exposure to looped staking strategies and is experiencing negative yields. Recovery efforts are ongoing, with Arbitrum's Security Council freezing a significant amount of ETH tied to the exploit.

(Source：Crypto Briefing)