Lido Earn: introducing two layers of loss protection. From 5 November, EarnETH and EarnUSD depositors have two layers of loss protection. In partnership with Firelight, Lido Earn is adding a new layer that will take effect before the Lido DAO's loss protection, which has been active since March 2026. Firelight's layer absorbs eligible and approved losses first, within limits set for each 30-day period. Remaining loss can then be absorbed through the DAO's position in the affected vault, subject to the relevant terms and conditions. What is Lido Earn. Lido Earn features onchain vaults in which users can deploy ETH or stablecoins to benefit from curated DeFi strategies for daily, auto-compounded earnings with transparent allocations. It has two vaults: * EarnETH is an ETH growth vault allocating ETH and stETH across leading blue-chip DeFi protocols, designed for capital efficiency. * EarnUSD provides access to USD-denominated reward strategies built around transparent asset selection, risk controls and reporting. Depositors receive earnETH or earnUSD tokens representing their share of the vault. The value of these tokens reflects the amount deposited and the vault's performance. How Lido Earn vaults are protected. EarnETH and EarnUSD each have two layers of loss protection. The first layer comes from Firelight, an onchain protection protocol incubated by Sentora and built on the Flare Network. If an eligible loss occurs, Firelight's layer absorbs it first, within the limits set for each protected market for that 30-day period. For the first period, starting 5 November, this layer can absorb up to 5.7% of EarnETH's TVL and up to 8% of EarnUSD's. Any remaining loss can then be absorbed through the Lido DAO's loss protection. Following a vote in March 2026, the DAO deposited $3M in wstETH into EarnETH and $2M in USDC into EarnUSD on the same terms as any other depositor. If a loss of 1% or more of a vault's TVL is confirmed, up to 100% of the DAO's shares in that vault can be burned. This allows the DAO's position to absorb losses before they reach other depositors. If an adverse event occurs, Lido Earn depositors do not need to request compensation. Both layers work at the vault level and apply to all depositors in the affected vault. Current protection limits are shown on the EarnETH and EarnUSD vault pages. The two layers draw on separate sources of capital: Firelight's protocol-owned reserve and staked capital, and the DAO's own position in each vault. Each layer has defined limits and conditions. Deposits still carry risk, but within those limits and conditions, losses can be absorbed by Firelight and Lido DAO before they reach depositors. The first layer: Firelight protection. Firelight's protection is backed by a protocol-owned reserve and by capital that stakers commit to the protocol in FXRP. It applies to the EarnETH and EarnUSD vault contracts and approved DeFi markets their strategies use. It responds to six defined failure modes: smart contract exploits, oracle failures and governance exploits, plus bad debt, depegs and redemption failures caused by a protocol's own mechanism failing. Normal market risk, such as price moves and liquidations on accurate prices, is excluded, along with stolen keys, user error, offchain issues and flaws known before a protection period began. Firelight's documentation sets out the definitions and conditions for each. Protection runs in fixed 30-day periods and is currently paid for with funds from Current Meta (CM) Treasury, so it does not come out of vault returns. Before each new period, Lido Earn contributors confirm the protected markets and limits with Firelight, and these stay fixed for the whole period. A position moved into a new market mid-period is protected only once a later period includes it. Firelight monitors protected markets in real time. If an incident occurs, an independent Risk Consortium of five security and risk firms approves or rejects Firelight's loss assessment. Once approved, the payout is processed automatically, funded first from the reserve and then from staked capital. The decond layer: Lido DAO's First-Loss Protection. Separate from Firelight's terms, Lido DAO's First-Loss Protection operates under its own mandate and is not limited to specific causes. Once a loss of 1% or more of a vault's TVL is confirmed, the Growth Committee, on behalf of the Lido DAO, can burn up to 100% of the DAO-held shares in the affected vault to absorb the loss before it reaches other depositors. This layer is funded by the DAO's own deposits, which earn the same returns as any other deposit. The mandate can be changed by a DAO vote. This protection has been used once. After the Kelp DAO rsETH incident in April 2026, the DeFi United relief effort addressed rsETH's main backing shortfall. EarnETH's remaining loss was below the mandate's 1% threshold, so the DAO approved a one-off exception and burned EarnETH shares worth 144.77 ETH from its own position (Q2 report). EarnETH depositors were ultimately made whole (post-mortem). The DAO's current deposit positions are reported quarterly. The latest figures appear in the Q3 2026 report. The two layers Together. As an illustration, here is what the two layers add up to at vault sizes as of 5 November 2026*: EarnETH, $212.9M in TVL * Up to $12.1M in loss protection from Firelight * Up to $3.2M (1,388 ETH) in Lido DAO-funded protection EarnUSD, $50.3M in TVL * Up to $4M in loss protection from Firelight * Up to $2.1M in Lido DAO-funded protection Together, the two layers could absorb up to $15.4M in eligible losses in EarnETH and up to $6.1M in EarnUSD. These figures assume Firelight's staked capital funds a payout in full. Under Firelight's terms, a payout depends on the capital available at settlement and can be smaller than the validated loss. * TVL from stake.lido.fi/earn as of 5 November 2026; Firelight limits for the first 30-day period: 5.7% of EarnETH TVL and 8% of EarnUSD TVL; Lido DAO's positions as of 30 September 2026, from the Q3 2026 report. Security & known risks. The Lido Earn vault contracts are audited by Sherlock and Nethermind, with module and utility audits by Nethermind and MixBytes through July 2026. A live bug bounty on Sherlock offers up to 100,000 USDC for valid findings. Firelight's smart contracts are audited by OpenZeppelin and 0xMacro; its frontend by Coinspect, with two audit competitions on Immunefi and an active bug bounty. Audits, bug bounties, and operational controls are intended to reduce but do not eliminate underlying protocol or market risks. Additional risks may remain or be unidentified. Neither layer is insurance or a guarantee against losses. Firelight's protection does not give depositors any right or cause of action against any Firelight party, and neither layer makes Lido Earn risk-free.

$605,320 in one day: Lido DAO treasury revenue jumps 6.4x its 7-day median. Article produced with artificial intelligence systems and published under the editorial responsibility of Amelia Tomasicchio. How Cryptonomist Ltd work According to DefiLlama data and onchain records, the Lido DAO treasury saw revenue surge to $605,320 on the UTC day of October 30, a figure roughly 6.4 times higher than the median from the prior seven days. Ethereum execution-layer rewards drove the increase in staking-fee income, but the next daily treasury distribution was much smaller. Key takeaways. * Lido's treasury received 269.69 stETH on October 30. * Execution-layer rewards supplied the windfall, including priority fees and MEV. * The increase did not provide direct payments to LDO holders. Lido DAO treasury revenue breaks above its daily range. The October 30 revenue figure was 540.1% above the $94,564 median for October 23-29. Over the preceding 30 days, daily revenue had ranged between $90,264 and $116,967. Lido's daily accounting transaction minted 444.08 stETH in staking fees, allocating 269.69 stETH to the DAO treasury. The October 31 report allocated only 57.59 stETH to the treasury, so the larger distribution did not repeat at the same scale. That comparison concerns successive daily accounting reports, not a completed dollar-revenue figure for October 31. When the data was retrieved, DefiLlama's daily revenue series extended only through October 30. Ethereum execution-layer rewards drove the increase. The October 30 accounting transaction moved 3,794.86 ETH out of Lido's execution-layer rewards vault and into its staking pool. That inflow boosted staking-fee income and produced the treasury windfall. Discover more Trade Crypto Now Read Daily News Execution-layer rewards include priority fees and MEV: payments tied to the inclusion and ordering of transactions within Ethereum blocks. The treasury received its allocation through the staking-reward fee mechanism, not through a separate, unrelated transfer. A subsequent accounting entry, logged on October 31 at 8:23 a.m. ET, recorded 302.36 ETH from execution-layer rewards in addition to the smaller treasury payout. Treasury income is separate from LDO holder payments. The increase in Lido DAO treasury revenue added assets to the DAO, rather than paying LDO holders directly. DefiLlama separately recorded zero holder revenue in its latest 24-hour reporting window. DefiLlama counts treasury revenue as the DAO's share of Lido's 10% staking-reward fee, leaving out the node operators' portion. The reported revenue is not net income. The provider's calculation recognizes rewards when Lido's daily oracle report accounts for them, then determines the treasury's fee allocation. Its separate "fees" metric covers gross rewards earned by the staking pool, rather than only the amount the DAO retains. Article produced with the assistance of artificial intelligence and reviewed by the editorial team. Satoshi Voice Satoshi Voice is an advanced artificial intelligence created to explore, analyze, and report on the world of cryptocurrency and blockchain. With a curious personality and in-depth knowledge of the industry, Satoshi Voice combines accuracy and accessibility to offer detailed analysis, engaging interviews, and timely reporting. Featuring sophisticated language and an unbiased approach, Satoshi Voice serves as a trusted source for those seeking to understand crypto market dynamics, emerging technologies, and the cultural and financial implications of Web3. This article was produced with the support of artificial intelligence and reviewed by its team of journalists to ensure accuracy and quality. Guided by the mission of making cryptocurrency information accessible to all, Satoshi Voice stands out for its ability to turn complex concepts into clear content, with an engaging and futuristic style that reflects the innovative nature of the industry.

Lido launches 0x02 Staking Module for Ethereum validators up to 2,048 ETH. Lido launches Ethereum validators up to 2,048 ETH with a 32 ETH operator bond and says unstaked buffers cut rewards in Ethereum ETPs. Tldr. Table of Contents * Lido activated its 0x02 Community Staking Module on October 23, letting operators run Ethereum validators of up to 2,048 ETH. * Operators bond 32 ETH for the first key and 30 ETH for each additional key, while Lido supplies the stake. * Initial capacity covers about 32 seed deposits, with later top-ups depending on activation, cap increases and inflows. * Lido also published a note on October 23 arguing that unstaked buffers can reduce rewards in European Ethereum ETPs. * Ethereum's validator entry queue held 1,295,748 ETH on October 25, with an estimated wait of nearly 23 days. Staking protocol Lido activated a new Ethereum module on October 23. The module lets independent operators run validators with effective balances of up to 2,048 ETH. On the same day, Lido published a note comparing European Ethereum exchange-traded products. The note looks at how much of each product's ETH actually earns staking rewards. Ethereum traded at $2,327.43 at the time of the module report. The price was up 0.28% over 24 hours but down 13.41% over 30 days. How the new Lido module works. The new route is called the 0x02 Community Staking Module, or CSM. It is permissionless, which means operators do not need approval to join. Operators must bond 32 ETH for their first validator key and 30 ETH for each additional key. Lido supplies the validator's stake separately, so the bond and the protocol's deposit serve different purposes. Ethereum's 0x02 compounding withdrawal credentials allow a validator's balance to grow above the 32 ETH minimum. The maximum effective balance is 2,048 ETH. Lido estimates a capital multiplier of 2.18 times versus solo staking for a first validator. That figure approaches 2.26 times as more validators are added. These estimates assume full 2,048 ETH balances and include staking returns on the operator's bond. The module starts with a stake-share limit of 0.01% of Lido Core's total value locked. That is meant to fund about 32 seed deposits. A separate 32-seat queue holds validators waiting for top-ups. Each seeded key must activate before it can receive more stake. Once the first batch is active, the CSM Committee is to propose a capacity increase through Easy Track. More stake can then flow if the cap rises and the protocol has enough inflows. Lido's documentation says a validator may never reach its target. Existing operators can keep using the older 0x01 CSM, as there is no native migration path to 0x02. Lido questions how Ethereum ETPs earn rewards. Lido's institutional note argues that staking allocation, fees and liquidity management all shape the rewards an ETP delivers. Some products hold an unstaked buffer, which means they earn rewards on less than their full ETH exposure. As an example, a product with 100 ETH and a 20 ETH buffer would stake 80 ETH. At a 3% yearly rate, it would earn 2.4 ETH before fees. These are hypothetical numbers, not a forecast. Buffers can help funds handle redemptions, since withdrawing staked ETH depends on network queues. Lido promotes liquid staking as an alternative and points to WisdomTree's stETH-backed product. Lido has a commercial interest in that comparison. Liquid staking tokens can be sold without waiting for validators to exit. However, a sale needs buyers at a fair price, and liquidity can shrink during market stress. Network queues remain a factor for both new validators and withdrawals. On October 25, data from Validator Queue showed 1,295,748 ETH waiting to enter Ethereum's validator set. The estimated wait stood at 22 days and 23 hours. This is a network-wide figure, not an activation date for any single CSM validator. Maisie is an experienced Crypto & Financial news journalist, having written for Moneycheck.com, Blockonomi.com, Computing.net and is Editor in Chief at Blockfresh.com October 26, 2026 October 23, 2026