TREE NEWS update: Lido announced an update to its EarnUSD fee model, cutting fixed costs and tying fees more closely to vault performance. The previous 1% management fee plus 10% performance fee is replaced by a cap of 0.5% management fee plus 20% performance fee, with launch pricing set at 0.2% management fee and 15% performance fee. Lido said the lower management fee reduces the cost of holding EarnUSD in low-yield environments, while the higher performance fee better aligns fees with actual returns. Fees will be displayed transparently on the EarnUSD vault interface.
Lido Revamps EarnUSD Fee Model to 0.2% Management Fee Plus 15% Performance Fee
The shift matters less for the headline numbers than for the incentive structure it signals: Lido is trading predictable carry for outcome-linked revenue, which only pays off if the vault's strategies actually clear the performance bar. It affects yield-seeking depositors most, who now bear more of the cost when returns are strong and less when they are thin. Whether this model spreads to other Lido products, and whether the launch pricing holds once the cap takes effect, is the open question.
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