Lido proposes $5.8M staked ETH allocation to cover Kelp DAO exploit shortfall

Lido has proposed allocating up to $5.8 million in staked ETH to cover a shortfall from the April 18 Kelp DAO exploit. The Ethereum price market for April shows 15% YES odds for reaching $4,000.

The exploit, attributed to North Korea’s Lazarus Group, targeted a LayerZero bridge vulnerability and resulted in a $292 million rsETH theft. Lido’s EarnETH vault, exposed to $21.6 million in risk, paused deposits and withdrawals but remains operational for core stETH/wstETH staking. The Ethereum price in April market reflects short-term bearish sentiment given the exploit’s scale and its connection to the Lazarus Group.

The Ethereum price in 2026 market holds steady at 4% YES. Daily volume is just $3 in actual USDC, and it takes $1,052 to move the price by 5 points, which signals limited trader concern about long-term Ethereum valuation from this exploit.

April’s DeFi exploits totaled $575 million in stolen funds, putting pressure on Ethereum’s security reputation. Buying YES at 4¢ pays $1 if Ethereum reaches $10,000 by year’s end, a 25x return. The market’s flat pricing suggests traders are waiting for stronger recovery signals or further attacks before adjusting positions.

Watch for Lido’s governance vote on the $5.8 million allocation, LayerZero’s post-mortem on the bridge vulnerability, and any new security audits across affected protocols. Movement on any of these could shift sentiment in both short- and long-term Ethereum markets.

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