Lido Earn adds two-layer loss protection for depositors
Lido Earn extended its depositor protection: EarnETH and EarnUSD vaults now carry onchain cover from Firelight as the first of two independent layers of loss coverage, applied automatically at the vault level with no action needed from depositors. Firelight absorbs eligible and approved losses first, within limits set per 30-day period — up to 5.7% of EarnETH's TVL and 8% of EarnUSD's TVL for the first period.
Any remaining loss falls to the Lido DAO's loss protection, which burns DAO-held shares from the initial deposits: $3M for EarnETH and $2M for EarnUSD, with the position able to grow via rewards or DAO votes. Illustration at $50M EarnUSD TVL: up to $4M from Firelight plus $2.1M from the DAO, or $6.1M combined in eligible and approved losses.
- Both layers are active for all Lido Earn depositors, with Firelight onchain coverage sitting on top of the DAO's first-loss position
- Firelight announced the onchain cover for Lido Earn vaults, with Lido relaying the news on X
Sources
- RT @Firelightfi: Lido Earn’s Vaults Add Onchain Cover From Firelight https://t.co/5Gcenkta0Mx.com ↗
- RT @DefiantNews: LIDO ADDS FIRELIGHT LOSS PROTECTION AHEAD OF DAO BUFFER @LidoFinance’s EarnETH and EarnUSD vaults have initial 30-day lim…x.com ↗
- RT @Kean_Gilbert: Loss protection is increasingly built into DeFi vaults that manage digital assets. Today, Lido Earn extends its own: Fire…x.com ↗
- RT @uvikdobro: Depositors in the @LidoFinance Earn vaults now benefit from @Firelightfi onchain coverage, on top of Lido DAO’s first-loss p…x.com ↗
- RT @Firelightfi: EarnETH and EarnUSD now have two layers of loss protection, with Firelight cover absorbing eligible losses first. Join u…x.com ↗
- Two independent layers of loss protection, now active for all Lido Earn depositors. Learn more here: https://t.co/bn8IFGLCgc Replying to their earlier post: As an illustration, here is what the two layers add up to, with Lido EarnUSD at $50M in TVL: • Up to $4M in loss protection from Firelight • Up to $2.1M in Lido DAO loss protection Together, the two…
