BlockBeats News, April 21st, Lido's social media post stated that its EarnETH treasury was impacted by the theft of 116,500 rsETH (approximately $292 million) through the Kelp DAO cross-chain bridge on April 18th. EarnETH holds approximately $21.6 million of rsETH/ETH leverage position on Aave, accounting for about 9% of the treasury's total assets. Currently, the EarnETH team is actively deleveraging to reduce the risk, and the outcome depends on the final decision of Kelp, LayerZero, and Aave on loss sharing and default handling.

Lido further stated that EarnETH has a $3 million "first loss protection mechanism" funded by the Lido DAO treasury, which will be used to reimburse the loss if necessary. Currently, the treasury has suspended redemption processes to assess the loss. This incident does not affect stETH and wstETH, as the Lido core staking protocol is not involved.