Lido Finance Responds Swiftly to Oracle Node Security Breach, Ensures User Funds Remain Safe

May 11, 2025, 9:36 p.m. 10 sources neutral

Lido Finance, a leading Ethereum staking protocol, reported a security incident after a private key used by oracle operator Chorus One was leaked. In response, Lido DAO initiated an emergency vote to replace the compromised oracle node, emphasizing the integrity of its multisig oracle infrastructure.

Despite the security threat, official statements confirmed no user funds were compromised and operations remained uninterrupted. The leaked key did not grant direct access to funds or control over protocol operations, limiting the attack's impact to the theft of a minor transaction fee of 1.4 ETH. The protocol explained that even a full compromise of the oracle system would only cause limited deviations in stETH value, thanks to built-in security boundaries.

Lido DAO’s swift response and transparent communication garnered positive community reactions, affirming confidence in the protocol’s governance and multisig protections. Market reactions remained stable, and on-chain data showed no abnormal activity. The event highlights the crucial role of multisig architectures in preventing broader systemic threats and maintaining protocol resilience.

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