A recent security incident involving Lido, a major Ethereum liquid staking protocol, has highlighted the importance of robust security protocols in DeFi. Despite an unauthorized access to one of its oracle keys, Lido managed to contain the breach and prevent user funds from being compromised. The incident occurred when Chorus One, an operator within Lido’s ecosystem, experienced unauthorized access to an oracle key, leading to a loss of 1.46 ETH (approximately $4,200) in gas fees. However, Lido confirmed no user funds were affected, thanks to its 5-out-of-9 voting majority protocol in the oracle system, which ensures resilience against individual breaches. The incident was swiftly addressed with an emergency DAO vote, substituting the compromised key for three critical contracts. This process also involved a temporary delay in oracle report processes due to a bug in Prysm linked to Ethereum’s recent Pectra update. Lido and Chorus One announced on X that they implemented these measures promptly to minimize damage and ensure user security. This incident highlights the continuous need for DeFi protocols to enhance their security standards. To prevent similar breaches, Lido plans to reassess and improve its security protocols, with a focus on upgrading older keys and bolstering overall security measures.