Lido extends two-layer loss protection to EarnETH and EarnUSD depositors

Lido Earn depositors in EarnETH and EarnUSD now receive two layers of loss protection, applied automatically at the vault level with no action required. Firelight, an onchain protection protocol, absorbs eligible losses first, capped per 30-day period at 5.7% of EarnETH TVL and 8% of EarnUSD TVL, covering smart contract exploits, oracle failures and governance exploits. Remaining losses can be absorbed by Lido DAO loss protection, which burns DAO-held shares: $3M for EarnETH and $2M for EarnUSD. At $50M EarnUSD TVL, the combined layers could cover up to $6.1M in eligible losses.

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