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Lido Reports Compromise of Oracle Key with Loss of 1.46 ETH
Lido, Ethereum's leading liquid staking protocol, faced a security breach when one of its nine oracle keys was compromised due to validator operator Chorus One. Key points include:
- Lido secures over 25% of all staked ETH on Ethereum.
- The compromised key was linked to a hot wallet used for oracle reporting, resulting in the theft of 1.46 ETH ($4,200) in gas fees.
- No user funds were affected, and no wider compromise was detected.
- Lido's oracle system operates on a 5-of-9 quorum mechanism, ensuring security even if some keys are compromised.
- Suspicious activity was first detected after a low-balance alert prompted an investigation.
- The compromised key was created in 2021 and lacked updated security standards.
- Lido initiated an emergency DAO vote to rotate the compromised key and has generated a new key with enhanced security measures.
- The transition from the compromised address (0x140B) to a new secure address (0x285f) is underway, pending a 48-hour objection period.