Hi everyone,
This is the first quarterly financial update on the DAO Treasury first-loss protection capital to Lido Earn. It covers Q2 2026 (April 1 – June 30, 2026) and includes the initial deployment, which took place in mid-March 2026.
This update follows the original $5m DAO Treasury allocation to Lido Earn proposal.
All figures are denominated in USD, consistent with the mandate. Vault rewards are not remitted to the Treasury; they accrue inside the vaults via share price and are reflected in the period-end position value below.
Summary
The DAO-approved $5m seed allocation was 100% deployed across Earn vaults during the reporting period. The EarnUSD and EarnETH vaults have been curated by Mellow since March 2026:
- a ~$2m EarnUSD allocation was deposited into EarnUSD.
- a ~$3m EarnETH allocation was funded in wstETH per the mandate and deployed into EarnETH.
| earnUSD | Deposit date | Initial deposit amount | March | April | May | June |
|---|---|---|---|---|---|---|
| Balances as of the end of the reporting month, USD | 11/03/2026 | $1,999,440.07 | $2,004,991.65 | $2,013,771.63 | $2,020,441.44 | $2,031,000.52 |
| Yield for the reporting month, USD | $6,068.92 | $8,796.24 | $7,100.15 | $10,695.74 | ||
| Forex exchange gain / (loss), USD | -$517.34 | -$16.26 | -$430.34 | -$136.66 |
| earnETH | Deposit date | Initial deposit amount | March | April | May | June |
|---|---|---|---|---|---|---|
| Balances as of the end of the reporting month, WETH | 01/04/2026 | 1,512.60 | / | 1,515.12 | 1,372.25 | 1,376.95 |
| Balances as of the end of the reporting month, USD | $3,220,193.24 | / | $3,419,557.10 | $2,751,140.56 | $2,161,914.69 | |
| Yield for the reporting month, USD | / | $5,764.36 | $4,177.50 | $7,931.97 | ||
| First-loss expense, USD | / | $0.00 | -$320,651.11 | $0.00 | ||
| Forex exchange gain / (loss), USD | / | $193,599.50 | -$351,942.93 | -$597,157.84 |
** Vault performance reflects vaults curated by Mellow.*
As of June 30, 2026:
- Total DAO capital deployed: $5,219,633.31 (priced as of deposit dates)
- Net rewards remitted to the Treasury this period: none (retained and compounded in vault share price per the mandate)
- Total losses this period: 144.77 ETH (143.98 shares were burnt for Kelp first-loss coverage — see below)
- Total DAO position value, after Kelp first-loss coverage (as of June 30): $4,192,915.21
- Net gain/loss (against the initial deposit):
- EarnUSD vault — gain $31,560.45
- EarnETH vault — loss 135.65 ETH
Mandate actions and on-chain references
Per the mandate’s reporting requirements:
Summary of mandate actions taken this period
- 1% loss-pause control (per vault): not triggered — the Kelp residual loss was below the 1% threshold.
- Escape hatch: not used.
- Loss coverage: a one-off, Kelp-specific coverage below the standard 1% threshold was executed (see “Kelp coverage” below). This was authorized separately and is not the standard ≥1% first-loss trigger.
Initial deposits transactions
DAO share-holding address:
- earnETH:
0x87D93d9B2C672bf9c9642d853a8682546a5012B5 - earnUSD:
0xf6F0732c1e9971497342C295141566E6F1A31e96
Main deployment transactions
- EarnUSD deposit transaction(s): Ethereum Transaction Hash: 0x5219a7d2d8... | Etherscan
- EarnETH funding / conversion / deposit transaction(s): Ethereum Transaction Hash: 0x2f9d886f66... | Etherscan
Kelp coverage
During April 2026, EarnETH was affected by the Kelp incident. The incident, response, and risk-framework changes are covered in full in the separate post-mortem, and the below-1% coverage authorization is documented in its own proposal.
This update reports only the impact on the DAO seed allocation. The coverage drawn from the seed totaled 143.98 earnETH:
- ETH-equivalent coverage: 144.77 ETH
- USD-equivalent impact: $320,651.11
- earnETH shares burned: 143.98 earnETH
- Related transaction references: Safe{Wallet} – Transaction details
Closing
This post is informational only and does not request any change to the existing DAO Treasury allocation mandate.