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LDO Price Soars 40% as Lido DAO Resolves Numic Operator Breach – Crypto News

Published

1 year ago

May 21, 2024

Dripp

Lido DAO (LDO) has seen its token price increase following the resolution of a security breach involving one of its Node Operators, Numic.

This situation, which raised eyebrows from investors and contributors, has been well contained with no loss of funds or disruption to the validators.

Lido DAO Resolves Numic Operator Breach

The breach was identified on the 14th of May, and it involved unauthorized access to a developer machine used by Numic, a Node Operator that is currently working with Lido on Ethereum protocol. While there were concerns that the mainnet validators’ encrypted key material backups may have been compromised, there is no indication that the encryption was tampered with or that the keys were used maliciously.

In anticipation of such an attack, Numic immediately acted by setting all their depositable keys to zero and performing step by step removal of all the possibly compromised keys. This prevented new deposits from being made to other validators that might have been compromised.

On May 14th, Lido DAO contributors were made aware of a security breach that affected an active Node Operator using the Lido on Ethereum protocol (Numic).

The incident has been resolved and has not resulted in validator operations being affected or any loss of funds (which only…

— Lido (@LidoFinance) May 21, 2024

Lido DAO contributors were instrumental in assisting Numic in conducting a detailed investigation of the breach. Together, they contributed to the preservation of the trust within the community and ensured that all actions were transparent. The precaution measures were successfully implemented without affecting the operations of the validators and the situation did not result in financial losses.

LDO Market Reaction and Price Surge

Following the security issues, the price of LDO increased significantly to 40% in this period. This bounce shows that investors trust Lido DAO to handle such situations well. At the time of writing this, Lido DAO’s token was $2, up by 34% within the last 24 hours. This has placed Lido DAO at the 56th position on CoinMarketCap with a live market capitalization of about $2 billion.

Concurrently, there have been increased trading activities in LDO derivatives with the volume spiking by 650% and reaching about $1.06 billion. In addition, it has also been observed that the open interest in these derivatives has increased by 60% and is now at $118.27 million.

Source: Coinglass

These metrics suggest a healthy market presence and possibly fresh capital investment as traders base their decisions on price direction on the token’s past performance and Lido DAO’s current activities.

While the Numic operator builds up its security and backup measures, the Lido DAO community is ready to address similar issues in the future. The DAO as a result discusses the potential future involvement of the Numic operator in the active set, to guarantee that all operators are as secure and reliable as possible.

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