Lido Finance, the leading Ethereum liquid staking protocol, has faced a significant sell-off by large holders and a security incident involving its oracle framework. Whales, including a wallet linked to DeFiance Capital, sold over $10 million worth of LDO tokens in recent days, leading to a sharp price decline of more than 10%.
The sell-off coincided with a security breach where a compromised oracle key affected one of Lido's validators, Chorus One. Despite no major financial losses or direct impact on user funds, the breach raised concerns that dented market confidence. Network engagement metrics have also shown decreases in daily active addresses and transaction counts, signaling reduced demand and user activity.
Historically, Lido has experienced similar volatile sell-offs and infrastructure challenges. Experts anticipate that this latest episode might encourage the protocol to strengthen its security measures to restore trust and stabilize the ecosystem. However, no immediate official response has been shared by Lido’s executive team regarding the whale sell-offs or the recent security event.