Lido DAO has introduced 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.
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EarnUSD is a stablecoin vault by Lido for earning transparent, onchain USD-denominated rewards. Get started today at stake.lido.fi/earn
Disclaimer: Content is for informational purposes only, not endorsement or investment advice. The accuracy of information is not guaranteed.
#931 - Circle Proposal For Aave, Road To Devcon 8, Fluid aWETH Redemptions On L2
Circle proposes a USDC rate hike on Aave. The EF announces the Road To Devcon 8 Academic Program. And Fluid extends aWETH redemptions to L2.
Circle proposal for Aave.
Road to Devcon 8 grants.
Fluid aWETH redemptions on L2.
Shutter DAO funding model.
EarnUSD is a stablecoin vault by Lido for earning transparent, onchain USD-denominated rewards. Get started today at stake.lido.fi/earn
Circle proposes raising USDC borrowing rates on Aave to ease liquidity stress after the KelpDAO exploit pushed utilization to 100%. The plan aims to attract deposits but faces criticism over liquidation risks and Circle’s reluctance to inject liquidity. Read more →
The Ethereum Foundation launched a grant program to fund regional events ahead of Devcon 8 in Mumbai (Nov 2026), with support for meetups, workshops, and discounted tickets for students and academics. Read more →
Fluid expanded its aWETH redemption tool to Arbitrum and Base, enabling users to swap aWETH collateral for wstETH or weETH. The protocol has already processed $400m in volume on Ethereum, helping unwind looped Aave positions. Read more →
Shutter Network introduced PEN, a DAO funding model using a perpetual endowment to generate yield for governance spending, featuring non-transferable voting seats and a dual-vault treasury system. Read more →
Besu 26.4.0 release
200 ETH Security badges issued
Growthepie app upgrade
Catalysis live on Ethereum
Grantr prototype for EIP-8141 frames.
Dan Finlay leaves Consensys
Base Kipseli propAMM bug
Polymarket hair dryer manipulation
Justin Sun sues WLFI
Disclaimer: Content is for informational purposes only, not endorsement or investment advice. The accuracy of information is not guaranteed.
Shutter Introduces Perpetual Endowment Network (PEN)
A proposed governance funding model featuring a permanent principal base used to generate yield for a continuous DAO runway.
Shutter Network introduced the Perpetual Endowment Network (PEN), a new governance funding model featuring a permanent principal base used to generate yield for a continuous DAO runway. Under the model, the yield generated can be distributed via a quarterly governance vote. Governance membership is represented by non-transferable, non-delegatable one-vote seats purchased via a bonding curve.
The DAO treasury is split into a Principal Vault that holds and grows the core endowment, and a Yield Vault that receives and distributes returns. DAO members can exit at any time for a partial refund on their seat. PEN is currently a conceptual proposal open for community feedback.
EarnUSD is a stablecoin vault by Lido for earning transparent, onchain USD-denominated rewards. Get started today at stake.lido.fi/earn
Disclaimer: Content is for informational purposes only, not endorsement or investment advice. The accuracy of information is not guaranteed.