Lido Earn lets users deploy ETH and USD stablecoins into DeFi vaults for onchain rewards. It consists of two vaults: EarnETH, an ETH growth vault allocating ETH and stETH across leading blue-chip DeFi protocols for capital efficiency, and EarnUSD, which provides access to USD-denominated reward strategies built around transparent asset selection, risk controls, and reporting. Firelight now enables cover on both.

Firelight enables covers for the onchain infrastructure behind these onchain earn programs, on transparent, verifiable terms that define exactly which protocol failures are covered. The collateral supporting Firelight’s cover is secured  from participants staking certain digital assets to the protocol with low correlation to traditional DeFi assets, so the capital that may cover a verified exploit event is not exposed to the event that triggered it.

Securing EarnETH and EarnUSD

The model rests on three principles:

• Adaptive terms. Scope, price, and capacity are registered onchain and reset every 30 days against each vault's live composition and risk profile. No lock-ins, no stale terms.

• Vault-level capacity. Cover capacity is set at the vault level, so protection scales with the vault rather than being rationed across individual positions.

• Active risk management. Continuous monitoring extends across the vault contracts and the protocols each vault is allocated to, so exposure is tracked as it changes.

Coverage Eligibility

Cover responds to defined technical and economic failure modes of the Earn vaults and of the strategies where deposited capital is actually deployed:

• Smart contract exploits. Bugs or vulnerabilities in a covered protocol's code, such as logic errors, reentrancy, access control failures, and upgrade flaws. This applies both to the EarnETH and EarnUSD vault contracts and to the integrated protocols each vault is allocated to at the time of loss.

• Oracle failures. Incorrect price data from misconfigured or stale feeds, compromised sources, or price manipulation.

• Governance exploits. Hijacked governance, including flash-loan voting attacks, malicious upgrades, and exploited governance contracts.

• Bad debt from mechanism failure. Liquidation or collateral mechanisms malfunction, socialising unrecoverable bad debt to depositors. This is a live consideration wherever a vault holds lending positions.

• Depegs from mechanism failure. A pegged asset breaks from its reference value because its stabilisation mechanism fails.

• Redemption failures. A protocol defect blocks withdrawals or returns materially less than fair value.

Independent Review of Every Exploit Event

To further distinguish the Firelight Protocol from traditional insurance arrangements, the Protocol does not employ a centralized process for claims assessment or adjudication. Rather, the Firelight Risk Consortium, an independent panel of security and risk firms comprising GFX Labs, Hypernative, Credora, Native, and Cyfrin, records its consensus on-chain regarding the occurrence of exploit events and the corresponding scope of coverage, providing for an objective, decentralized assessment process.

Cover That Tracks Moving Capital

Exposure is monitored continuously across the protocols each vault holds, and terms are re-registered onchain every 30 days against what the vault holds now.

For depositors, that places a live protection layer under capital deployed across DeFi. For Firelight, it shows cover can hold against an actively managed, multi-protocol risk surface. Cover is live as of November 5, 2026.