Lido DAO Responds to Key Breach: No Funds Affected, Oracle Repaired

Despite the security breach impacting Lido’s oracle system, user funds remain protected and operations are stable. The incident triggered emergency measures from the Lido DAO as they moved swiftly to replace the compromised node. 5-of-9 multisignature setup within the system safeguards against a complete compromise. Investigations confirmed all other oracle members remain unaffected. Notably, a small unauthorized gas fee transaction of 1.4 ETH occurred due to the incident, unrelated to protocol assets or user balances. Lido clarifies that even with an oracle compromise, built-in mechanisms will mitigate potential deviations in the stETH exchange rate. While the breach did not impact core operations or cause any losses, the swift response underlines the importance of redundancy and governance in decentralized infrastructures.