# Lido Earn DAO Treasury Allocation — Q2 2026 **URL:** \ **Category:** Finance\ **Created:** [August 27, 2026, 10:34am UTC](https://research.lido.fi/t/lido-earn-dao-treasury-allocation-q2-2026/11831 "2026-08-27T10:34:11Z")\ **Posts on this page:** 4\ **Page:** 1
**Author:** ![lido\_earn](https://avatars.discourse-cdn.com/v4/letter/l/8edcca/32.png) [@lido\_earn](https://research.lido.fi/u/lido_earn)\ **Post date:** [August 27, 2026, 10:34am UTC](https://research.lido.fi/t/lido-earn-dao-treasury-allocation-q2-2026/11831/1 "2026-08-27T10:34:12Z")
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](https://research.lido.fi/t/lido-earn-competing-on-trust-5m-treasury-allocation/11228) 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](https://app.safe.global/transactions/tx?safe=eth:0x87D93d9B2C672bf9c9642d853a8682546a5012B5&id=multisig_0x87D93d9B2C672bf9c9642d853a8682546a5012B5_0x1a793e08952f648002438a8e2e865be805c3046343219ccfc6f9820de725891f) | $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](https://app.safe.global/transactions/tx?safe=eth:0x87D93d9B2C672bf9c9642d853a8682546a5012B5&id=multisig_0x87D93d9B2C672bf9c9642d853a8682546a5012B5_0xc98ebb60dba3588d4681c0ff06c1f4b13865969ed64a721c3f7e91bb969415bc) | 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](https://etherscan.io/tx/0x5219a7d2d875fd6284d0bd6749f4776608f8c08fd9d86060ad953f36fbdc32a5) - EarnETH funding / conversion / deposit transaction(s): [Ethereum Transaction Hash: 0x2f9d886f66... | Etherscan](https://etherscan.io/tx/0x2f9d886f6687a8e6c4904bdbf9581ebb78bf47595651ccd767088bec91db3e07) ### 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](https://research.lido.fi/t/kelp-incident-review-earneth-exposure-response-and-risk-framework-changes/11579), and the [below-1% coverage authorization](https://research.lido.fi/t/authorise-loss-coverage-below-the-1-threshold-for-the-kelp-incident/11527) 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](https://app.safe.global/transactions/tx?safe=eth:0x87D93d9B2C672bf9c9642d853a8682546a5012B5&id=multisig_0x87D93d9B2C672bf9c9642d853a8682546a5012B5_0x055959398b723c46e92fbae6e26a81ff90dc3d84c82d8c6a9e219061751260f7) ## Closing This post is informational only and does not request any change to the existing DAO Treasury allocation mandate. ---
**Author:** ![Nerixmachine12](https://dub1.discourse-cdn.com/flex013/user_avatar/research.lido.fi/nerixmachine12/32/6964_2.png) [@Nerixmachine12](https://research.lido.fi/u/Nerixmachine12)\ **Post date:** [August 27, 2026, 6:42pm UTC](https://research.lido.fi/t/lido-earn-dao-treasury-allocation-q2-2026/11831/2 "2026-08-27T18:42:39Z")
Makes total sense to put idle treasury capital to work through Lido Earn. Generating additional yield natively helps sustain DAO operations and growth initiatives while keeping risk transparent. Supportive of this allocation plan. ---
**Author:** ![jack1](https://dub1.discourse-cdn.com/flex013/user_avatar/research.lido.fi/jack1/32/7079_2.png) [@jack1](https://research.lido.fi/u/jack1)\ **Post date:** [August 28, 2026, 2:54am UTC](https://research.lido.fi/t/lido-earn-dao-treasury-allocation-q2-2026/11831/3 "2026-08-28T02:54:35Z")
Why was Mellow chosen in the first place? Is there any accountability mechanism for the person actually responsible for this business on the team, given the losses incurred? When the team sets goals and tasks, are there detailed criteria and requirements? For example, is there a clearly defined target that needs to be achieved, followed by a review of the execution process? If the target is not met, is there a corresponding accountability mechanism? Do these mechanisms actually exist? ---
**Author:** ![DonGonzalo](https://avatars.discourse-cdn.com/v4/letter/d/aeb1de/32.png) [@DonGonzalo](https://research.lido.fi/u/DonGonzalo)\ **Post date:** [September 29, 2026, 4:05am UTC](https://research.lido.fi/t/lido-earn-dao-treasury-allocation-q2-2026/11831/4 "2026-09-29T04:05:10Z")
any updates on future allocations?