Kelp DAO rsETH Bridge Hack Update: Lido Finance to Help Fund Gap

Global DeFi Unites in Relief Efforts After Kelp DAO rsETH Bridge Hack

The world of crypto is coming together after a major security breach. On April 18, 2026, a massive exploit linked to the Lazarus Group through Kelp DAO rsETH bridge hack drained 116,500 rsETH, leading to a loss of $292 million. Now, Lido Finance is stepping up to lead a rescue mission.

Source: X Official (@LidoFinance)

LidoDAO has proposed a plan to contribute 2,500 stETH (worth about $6 million) to a special relief fund. This fund aims to fix the money gap caused by the Kelp DAO rsETH bridge hack and keep the market steady.

Lido’s Response to the KelpDAO Exploit: Protecting the EarnETH Vault

While Lido’s main products like stETH remains 100% safe, one specific product called the EarnETH vault was affected. This vault had about 9% ($21.6 Million) of its total assets tied up in rsETH. To keep things safe, the platform has:

• Paused Deposits: No one can put money in or take it out for now.

• $3 Million Protection: Lido has already activated a "first-loss" fund. This money, held in the DAO treasury, will be used first to cover any immediate losses for vault users.

• Proposed More Aid: Lido-Labs proposed a one-time contribution of up to 2,500 stETH (roughly $6 million) to a global relief fund. Voting for "Vote #200" ends on April 26, 2026 at 20:09 UTC, determining if the $6 million will be released.

Lido Finance experts warn that without this relief plan, EarnETH depositors could face total losses of up to 9,000 ETH.

What Happens Next?

The Lido community is currently voting on this $6M relief fund plan, last date April 26, 2026. If the vote passes, the money will go to a "relief vehicle." This group will use the funds to fill the hole left by the hackers. This helps avoid forced liquidations, a system automatically sells a user's crypto at a bad price because of market stress.

Kelp DAO rsETH Bridge Hack Update: Global DeFi United Effort

LidoDAO is not the only one contributing to the fix. Because the total deficit across the market exceeds 100,000 ETH, other leaders are stepping up:

• Aave’s Founder: Stani Kulechov pledged 5,000 ETH personally.

• EtherFi: The EtherFi Foundation proposed a 5,000 ETH contribution.

By pooling these resources, the goal is to fully cover the Kelp DAO rsETH bridge hack shortfall. This prevents a liquidation cascade where $8 billion in value on platforms like Aave could have been put at risk. LidoDAO’s 2,500 stETH will only be spent if the total fund is large enough to fix the entire problem, ensuring a clean start for all affected users.

Note: The article is for informational purposes only. It does not provide any financial or legal advice.