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Lido Races to Patch Oracle Exploit—Declares Protocol ‘Fully Secure’ After Emergency DAO Vote

Lido Races to Patch Oracle Exploit—Declares Protocol ‘Fully Secure’ After Emergency DAO Vote

Published:
2025-05-12 01:18:16
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Lido declares protocol ‘fully secure’ after oracle attack sparks emergency DAO vote

Lido’s staking protocol faced a crisis after an oracle attack forced an emergency DAO vote—now the team insists all vulnerabilities are patched. Was it a close call or just another day in DeFi’s ’move fast and break things’ circus?

The exploit—which could’ve drained funds—was caught by white hats before disaster struck. Cue the sigh of relief from ETH maximalists.

Meanwhile, TradFi bankers clutch their pearls and whisper: ’See? This is why we stick to 0.01% yield savings accounts.’

Lido breach sparks renewed focus on oracle security and DeFi resilience

While the breach led to the drain of the oracle address’s ETH balance (which was purposely held at a low level, Chorus One said), the attack did not affect Lido’s operations, as its protocol reporting oracles needs a 5-of-9 consensus. 

Lido’s head of validators, Izzy, commented that in the worst-case scenario, compromised oracles could cause delays in stETH rebases, whether positive or negative. This would primarily affect stETH holders, but the impact would be negligible, except for those using stETH in Leveraged DeFi strategies.

The Lido DAO vote to rotate the compromised address currently has unanimous support, though it has not yet reached a quorum. 

Izzy continued to say that oracles are complex and have different usages across DeFi. He noted that in Lido, they’re an integral part of the protocol, and possible negative impact is meaningfully mitigated through effective decentralization, segregation of duties, and multiple layers of checks.

The breach underscores the urgent need for strong cybersecurity protocols in decentralized finance as global monetary, trade, and business systems increasingly transition onchain into complex digital infrastructures with expansive attack surfaces.

Crypto industry urged to act as hacks soar to $2B in Q1 losses

The crypto industry has suffered a series of thefts, prompting questions about the security of customer funds, with hacking hauls totaling more than $2 billion in 2024 – the fourth straight year where proceeds have topped more than $1 billion.

Earlier this year, the crypto exchange Bybit suffered the industry’s largest hack at $1.4 billion, with North Korea’s Lazarus Group pegged as the culprit by cybersecurity firms, which was later confirmed by federal authorities.

Hacken also reported that crypto hacks were responsible for $357 million in losses in April 2025, a significant increase from losses incurred in March.

Speaking at Token2049, Hacken CEO Dyma Budorin noted that the crypto industry needs to adopt more robust cybersecurity and code auditing measures to stem the tide of hacks and exploits plaguing the asset sector.

Cybersecurity threats in crypto have become so pronounced, particularly from hacking groups associated with the Democratic People’s Republic of North Korea (DPRK). Leaders from the Group of Seven countries are reportedly looking to discuss how the numerous crypto hacks and malicious cyber activities that North Korea has engaged in for years could be addressed and mitigated.

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