Lido proposes allocating $5.8M in staked ETH to cover losses from Kelp DAO's $292M rsETH bridge exploit.
Security & Exploits ·
Lido's governance is considering a proposal to allocate up to $5.8 million in staked ETH to address losses from a $292 million exploit affecting Kelp DAO's rsETH bridge. The exploit, which occurred last week, targeted the bridge infrastructure underlying the liquid staking derivative, leaving affected users with significant shortfalls.
The proposed allocation represents a coordinated relief effort, with Lido contributing staked ETH to help compensate victims. The mechanism would channel these funds toward covering the gap between user losses and existing recovery channels, though the specific distribution methodology and governance timeline remain to be detailed through the voting process.
The proposal reflects broader ecosystem coordination following the bridge incident, but key details about implementation, approval requirements, and how the relief effort will be distributed across affected parties and protocols have not yet been finalized. The vote's outcome and any accompanying conditions or timelines are still pending.