Over on the Lido Research Forum, an active proposal is currently available for the Lido DAO to review. This submission suggests enacting a temporary reduction to the first-loss coverage protection threshold for the EarnETH vault.

https://t.co/63dymmwDgA

As it stands today, the Lido EarnETH safeguard mechanism only activates when the vault sustains damages exceeding 1% of its overall holdings. Should the rsETH deficits be handled by DeFi United, Lido Contributors forecast that the actual asset drop will stay below that 1% line.

With the primary goal of ensuring EarnETH users are fully reimbursed, this proposal advocates for the implementation of a one-time reduced limit for those utilizing the vault.