Ethereum staking protocol Lido Finance has disclosed that its protocol has experienced 20 major slashing events due to a series of infrastructure and signer configuration issues with validators operated by Launchnodes.
this event According to Launchnodes, the incident occurred on October 11 at approximately 3:30 pm UTC.In an October 11 post about X, Lido explain Launchnodes’ validator nodes are now offline and curtailment has stopped while the root cause is investigated.
This cut occurs on the Ethereum blockchain, and Lido expects the impact to be approximately 20 Ethereum (ETH) worth $31,000, as well as additional penalties for validators to be offline during troubleshooting, and inactivity penalties that validators will accrue.
20 validator-related cuts have occurred @start node Node operators are part of the Lido protocol.
Launchnodes and DAO contributors are investigating.
Validators are offline and scaling has stopped while the root cause is investigated.
— Lido (@LidoFinance) October 11, 2023
Slashing is the process by which a validator violates a blockchain’s proof-of-stake consensus rules, which typically results in the validator being removed or having a portion of the staked ether they provided as collateral slashed.
In a post hours later, Launchnode said the curtailment occurred due to infrastructure and signer configuration issues.
“We are investigating and taking steps to prevent further occurrences and restore full service,” the platform added.
Addressing the 5:30 PM CET incident where Launchnodes’ Lido protocol validator nodes were slashed: The issue has been identified and associated with infrastructure and web3 signer configuration issues. We are investigating and taking steps to prevent this from happening again…
— Launchnodes (@launchnodes) October 11, 2023
Lido said the protocol’s stakers will not be affected other than daily reward reductions, which will be reflected in the next benchmark adjustment on October 12.
The staking provider also confirmed that Lido DAO’s insurance fund is 6,230 The staked ETH, worth $9.5 million, will be used to mitigate the impact of the cut – but by design, it will not trigger automatically.
Lido Add to Once the “coverage method” is determined, stETH holders will be compensated and Launchnodes have Commitment Compensate Lido for all losses suffered.
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Liquid Staking Protocol says the process is not automated as it is impossible to know in advance what the total loss will be.
Lido is the largest liquidity staking protocol to date, with a total value locked in the protocol of $13.8 billion. according to To Delphirama. The second largest is Rocket Pool, valued at $1.7 billion.
From the launch of the beacon chain on December 1, 2020, to late February 2023, only 226 validators (0.04% of all validators) in the Ethereum ecosystem were cut.
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