Lido Reduces Management Fee for EarnETH by 80%

Lido (LDO) has reduced the management fee for its Ethereum (ETH) based yield vault, EarnETH, from 1% to 0.2%. The performance fee has been adjusted upwards from 10% to 15%, making the fee structure more closely linked to operational performance. On the 27th at 1:07 PM (KST), Lido announced the update to the fee structure for the EarnETH vault. The new structure allows for a maximum of 0.5% asset management fee and a 20% performance fee, with an initial application of a 0.2% asset management fee and a 15% performance fee. The key aspect of this change is the reduction of the fixed management fee while increasing the proportion of performance-based fees. Lido explained that a lower management fee would reduce the cost of holding EarnETH for users in a low-yield environment. EarnETH is a vault that manages Ethereum-denominated assets within the Lido Earn product suite, and depositors receive earnETH tokens. This vault utilizes DeFi protocols such as AAVE, UNI, and Morpho to gather reward opportunities. Lido stated that all fees will be displayed on the EarnETH vault screen.

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