# Lido Offers 2,500 stETH To rsETH Relief Vehicle

By [ETH Daily](https://ethdaily.io) · 2026-04-23

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Lido DAO has [introduced](https://x.com/LidoFinance/status/2047371180781539827) a governance proposal to allocate 2,500 stETH to a relief fund aimed at fully covering the rsETH shortfall stemming from the KelpDAO LayerZero exploit. According to Lido, the initiative is being led by Aave service providers and will include contributions from other ecosystem participants.

Lido's EarnETH vault has direct exposure to rsETH, and if the deficit is not resolved, depositors are expected to face an estimated 9% loss, which would need to be covered in part by Lido's first-loss protection program. If the proposal passes, Lido DAO will transfer the 2,500 stETH to the Aave-led relief vehicle.

Lido also warned that the prolonged deficit could drive positions into forced deleveraging or liquidation. Borrowers on Aave are currently paying elevated borrowing costs amid peaking utilization rates.

Disclosure: Lido is a current sponsor of ETH Daily.

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Disclaimer: Content is for informational purposes only, not endorsement or investment advice. The accuracy of information is not guaranteed.

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*Originally published on [ETH Daily](https://ethdaily.io/lido-offers-2500-steth-to-rseth-relief-vehicle)*