Lido Shifts EarnETH Fee Structure to Reward Performance

Lido, a leading liquid-staking protocol, has announced changes to its EarnETH Vault fee structure. The new model shifts a larger portion of costs from assets under management (AUM) to returns generated by the strategy.

The immediate change reduces the AUM fee from 1% to 0.2%, while increasing the performance fee from 10% to 15%. This means users will pay less in fixed fees, but a larger share of their returns will be taken as a performance charge.

Lido's EarnETH Vault currently holds nearly $200 million in total value locked (TVL), with a reported 3.5% annual percentage yield (APY) over the previous 14 days. The new fee structure is designed to incentivize vault performance and reward users for participating in the protocol.