Lido's EarnETH vault is exposed to a $21.6 million risk following the theft of 116,500 rsETH, valued at approximately $292 million, from the Kelp DAO cross-chain bridge on April 18. The vault's exposure stems from a leveraged position on Aave, representing about 9% of its total assets. In response, the EarnETH team is actively working to deleverage and mitigate potential losses, with outcomes contingent on decisions by Kelp, LayerZero, and Aave regarding loss allocation and debt resolution.To address potential losses, Lido has a $3 million first-loss protection mechanism funded by the Lido DAO treasury. This protection will be utilized if necessary. Meanwhile, deposits and withdrawals from the EarnETH vault have been temporarily suspended to assess the situation. Importantly, this incident does not impact Lido's stETH or wstETH, and the core staking protocol remains unaffected.