Lido Earn adds a conditional first layer of loss protection
Firelight precedes the DAO buffer, with defined limits and exclusions rather than a blanket deposit guarantee.
Lido says EarnETH and EarnUSD now have Firelight protection ahead of the existing DAO layer. For the first 30-day period, limits are 5.7% of EarnETH vault value and 8% of EarnUSD vault value.
Protection applies to eligible approved losses and defined failure modes. Ordinary market moves, stolen keys and user errors are excluded. Firelight payouts depend on capital available at settlement and may be smaller than validated losses; the DAO layer also has conditions.
Depositors do not submit individual compensation requests because protection operates at vault level. For product teams, that simplifies the user workflow, but disclosures still need to explain limits, covered markets and renewal periods. The arrangement reduces specified exposures without eliminating deposit risk.