Lido adds Firelight as first line of loss protection for EarnETH and EarnUSD

Lido has integrated Firelight as the first loss-protection layer for its EarnETH and EarnUSD products, adding coverage for depositors in the two yield-bearing vaults. The move gives users a backstop against losses ahead of any other coverage, aimed at strengthening confidence in the Earn product line. Lido did not disclose the size of the protection or the specific terms of the Firelight arrangement in the announcement. The integration matters because loss protection has become a competitive differentiator for onchain yield products, where depositors weigh smart-contract and strategy risk against returns. What to watch next is whether the added backstop draws measurable inflows into EarnETH and EarnUSD and whether Lido extends similar coverage to other products.