Lido DAO, the organization behind the liquid staking protocol Lido (LDO), has announced the upcoming resumption of operations for its EarnETH vault. The vault was suspended earlier this month after a significant security incident involving a bridge operated by KelpDAO, resulting in a loss of approximately $292 million (116,500 rsETH).
Background to the suspension
On [Insert Date of Hack, e.g., January 10, 2026]an attacker exploited a vulnerability in a cross-chain bridge used by KelpDAO, draining 116,500 rsETH tokens, valued at around $292 million at the time. As a precaution to protect users’ funds, Lido has proactively suspended deposits and withdrawals for its EarnETH vault, which integrates with various DeFi protocols to generate returns on $ETH deposits.
The decision to halt operations was a standard security response, allowing the Lido team to assess the impact of the incident on its own smart contracts and ensure that no funds in the EarnETH vault were compromised. The vulnerability was isolated to the bridge infrastructure, not to the core logic of the vault.
Resume details and user impact
According to Lido’s official announcement, the EarnETH vault will be fully operational again [Insert Date of Resumption, e.g., January 24, 2026]. Users will once again be able to make deposits and withdrawals without restrictions.
Importantly, Lido confirmed that reward payments for EarnETH depositors continued uninterrupted throughout the entire suspension period. This means that users did not lose any potential revenue during the downtime. The protocol’s ability to maintain reward payouts while the vault was in ‘Deposits Only’ or ‘Paused’ status underlines the resilience of the underlying architecture.
Why this matters for Lido and DeFi
The quick suspension and subsequent resumption of the EarnETH vault demonstrate a mature approach to risk management within the DeFi space. For Lido, a protocol that manages more than $30 billion in Total Value Locked (TVL), maintaining user trust is of paramount importance. By acting decisively and transparently, Lido has strengthened its reputation as a responsible steward of user assets.
For the broader DeFi ecosystem, this event serves as a reminder of the systemic risks associated with bridge vulnerabilities. The KelpDAO incident is one of several high-profile bridge hacks in recent years, underscoring the need for ongoing security audits and robust emergency procedures. Lido’s handling of the situation sets a positive precedent for how protocols should communicate and act during crises.
Conclusion
Now that the EarnETH vault is fully operational again, Lido has moved past the immediate impact of the KelpDAO bridge hack. The incident, while serious, did not result in any immediate losses for EarnETH users, and the protocol’s continued reward distribution during the hiatus is a strong signal of its operational stability. The resumption marks a return to normality for one of Lido’s key return-generating products.
Frequently asked questions
Question 1: What is the EarnETH vault?
A: EarnETH is a vault within the Lido ecosystem that automatically allocates deposited funds $ETH in various DeFi strategies to generate returns for users.
Question 2: Were any user funds lost during the KelpDAO bridge hack?
A: No. The exploit targeted a bridge used by KelpDAO, and not the Lido EarnETH vault itself. Lido’s proactive suspension ensured that no user funds in the vault were at risk.
Question 3: Will I receive rewards for the period the vault is suspended?
A: Yes. Lido confirmed that incentive payments continued throughout the suspension period. Users will have accrued revenue as normal.