Lido proposes $5.8M ETH for Kelp exploit shortfall

Decentralized staking provider Lido is considering a significant allocation of staked Ether to cover potential losses from the Kelp decentralized autonomous organization (DAO) exploit. The proposal suggests dedicating up to $5.8 million in staked ETH to address the shortfall, aiming to protect users and maintain confidence within the ecosystem. This move highlights the interconnectedness of DeFi protocols and the proactive measures being taken to mitigate risks associated with smart contract vulnerabilities and exploits. The decision reflects Lido's commitment to safeguarding its users' assets and the broader health of the Ethereum staking landscape.