Lido Finance detects 20 interrupted events due to validator configuration Cryptocurrency scrgruppen

Ethereum staking protocol, Lido Finance, revealed that its protocol experienced 20 interruption events due to a series of infrastructure and signer configuration issues from validators managed by Launchnodes.

the incident It happened on October 11 at around 3:30 PM UTC, according to Launchnodes. In an October 11 post on X, Lido He said The Launchnodes validation nodes are now offline, and shutdowns have been halted while the root cause is investigated.

The downgrade took place on the Ethereum blockchain and Lido expects the impact to be around 20 Ether (ETH), worth $31,000, plus additional penalties when validators are offline for troubleshooting, along with inactivity penalties that validators will accrue.

Slashing is a process in which a validator violates the proof-of-stake consensus rules of a blockchain, which often results in the validator removing or severing a portion of the staked ether they offered as collateral.

In a post hours later, Launchnode said the hacking events occurred due to an infrastructure and site configuration issue.

The platform added: “We are investigating and taking the necessary steps to prevent any further incidents and restore full service.”

LeDoux said that the protocol’s stakeholders were not affected other than the reduction in daily rewards which will be reflected in the next rebasing on October 12.

The service provider also confirmed that Lido DAO has an insurance fund of 6,230 Stead-Ethereum, worth $9.5 million, will be used to mitigate the impact of disruption – but by design is not automated.

Lido He added stETH holders will be compensated once the Hedging Method is selected, while Launchnodes have been selected Pledge To compensate for all losses incurred by Lido.

Related: Ethereum staking services agree to a 22% limit for all validators

Imad Liquid Protocol said that the process is not automatic because it is impossible to know the total losses ahead of time.

Lido is by far the largest liquid storage protocol, with a total value of $13.8 billion locked on its protocol. According to To Devilama. The next largest is Rocket Pool at $1.7 billion.

Only 226 validators (0.04% of total validators) were cut in the Ethereum ecosystem from the launch of the Beacon Chain on December 1, 2020 until late February 2023.

magazine: DeFi Dad, Hall of Flame: Ethereum is “woefully undervalued” but getting stronger

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