Lido Earn Adds On-Chain First Loss Compensation Mechanism, Lido DAO Allocates 5 Million USD

GateNews

2026-03-20 07:01:25

Gate News, March 20 — Lido Earn has added an on-chain first-loss compensation mechanism to offset potential user losses in extreme situations. Lido DAO has allocated $5 million from its treasury for this purpose. When losses valued at market price reach or exceed 1%, the dedicated protocol reserve will absorb the losses first, and user deposits will remain unaffected.

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