Lido has updated the fee structure for its EarnETH Vault, replacing the previous fixed model of 1% assets-under-management (AUM) fee plus a 10% performance fee with a more flexible framework tied more closely to product performance. Under the revised structure, the fee schedule can go up to 0.5% AUM plus a 20% performance fee. At launch, however, the vault will use a lower starting rate of 0.2% AUM and a 15% performance fee. According to Lido, the drop in the management fee from 1% to 0.2% is intended to reduce holding costs for users during lower-yield periods, while the higher performance fee is meant to align protocol revenue more directly with the vault’s actual results. Lido also said all currently effective fees will be displayed transparently in the EarnETH Vault interface. The change is aimed at refining the pricing mechanism for the EarnETH yield product and making the fee structure more flexible.
Lido has updated the fee structure for its EarnETH Vault, shifting to a more flexible performance-linked model for the yield product.
Under the new plan, EarnETH fees will move from the previous structure of 1% assets under management (AUM) plus a 10% performance fee to a model capped at 0.5% AUM plus a 20% performance fee. When the new structure takes effect, it will start at 0.2% AUM plus a 15% performance fee. Lido said any future changes will be announced separately.
According to Lido, lowering the management fee from 1% to 0.2% will reduce the cost of holding EarnETH in lower-yield environments. At the same time, the higher performance fee share is designed to tie protocol revenue more closely to the vault’s actual performance.
Lido added that all fees currently in effect will be displayed transparently in the EarnETH Vault interface. The adjustment is intended to refine the fee mechanism for the EarnETH yield product, increase pricing flexibility, and strengthen alignment between user returns and product performance.
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