Lido Earn introduces new on-chain first-loss compensation mechanism
Foresight News reports that Lido Earn has introduced an on-chain first-loss compensation mechanism to offset potential losses users may suffer in extreme situations. To support this, Lido DAO has allocated $5 million from its treasury. When losses calculated at market value reach or exceed 1%, the dedicated protocol reserve will absorb the losses first, ensuring that user deposits remain unaffected.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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