Lido adds Firelight as first line of loss protection for EarnETH and EarnUSD

An onchain protection protocol now absorbs eligible vault losses before Lido DAO's own safety net kicks in Lido has added a new layer of protection to its EarnETH and EarnUSD vaults. Starting November 5, 2026, depositors in those products are covered by two separate buffers against losses instead of one. The first buffer comes from Firelight, an onchain protection protocol. Lido DAO’s existing protection, which until now was the only cushion, moves into second position. How the two layers stack up Under the new setup, Firelight steps in first when a vault takes a hit. It absorbs eligible losses up to set capacity limits, and those limits apply over each 30-day period. If a loss blows past what Firelight can cover in that window, Lido DAO’s protection mechanisms pick up the remainder. For the opening 30-day period, Firelight’s coverage is capped at 5.7% of EarnETH’s total value locked, which works out to approximately $12.1 million. On the stablecoin side, the cap sits at 8% of EarnUSD’s TVL, or roughly $4 million. Those caps are expressed as a share of TVL, so the dollar ceiling depends on how much capital sits in each vault. Coverage resets every 30 days and applies at the vault l...