{"id":172605,"date":"2023-10-12T06:21:37","date_gmt":"2023-10-12T00:51:37","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=172605"},"modified":"2023-10-12T06:21:37","modified_gmt":"2023-10-12T00:51:37","slug":"lido-finance-discloses-20-slashing-events-due-to-validator-config-issues-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/lido-finance-discloses-20-slashing-events-due-to-validator-config-issues-crypto-news\/","title":{"rendered":"Lido Finance discloses 20 slashing events due to validator config issues – Crypto News"},"content":{"rendered":"
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Ethereum staking protocol Lido Finance has disclosed its protocol saw 20 slashing events due to a series of infrastructure and signer configuration issues from validators operated by Launchnodes. <\/p>\n

The incident<\/a> occurred on Oct. 11 at about 3:30 pm UTC, according to Launchnodes. In an Oct. 11 post on X, Lido said<\/a> Launchnodes’ validators nodes are now offline, and slashings have ceased while the root cause was being investigated. <\/p>\n

The slashing took place on the Ethereum blockchain and Lido projected the impact to be around 20 Ether (ETH),<\/a> worth $31,000, as well as additional penalties while the validators are offline for troubleshooting, along with inactivity penalties that the validators will accumulate. <\/p>\n

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20 slashings have occurred relating to validators operated by the @launchnodes<\/a> node operators as a part of the Lido protocol. <\/p>\n

Launchnodes and DAO contributors are investigating. <\/p>\n

The validators are offline and slashings have ceased while the root cause is being investigated.<\/p>\n

\u2014 Lido (@LidoFinance) October 11, 2023<\/a><\/p><\/blockquote>\n

Slashing is a process where a validator breaches a blockchain\u2019s proof-of-stake consensus rules, which often results in the removal of that validator or slashing a portion of the staked-Ether that they provided as collateral.<\/p>\n

In a post hours later, Launchnode said the slashing events occurred due to an infrastructure and signer configuration issue. <\/p>\n

\u201cWe are investigating, and taking steps to prevent any further occurrences and restore full service,\u201d the platform added.<\/p>\n

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Addressing the 5:30pm CET incident with Launchnodes’ validator nodes for Lido protocol getting slashed: The issue is identified, and linked to an infrastructure and web3 signer configuration issue. We are investigating, and taking steps to prevent any further\u00a0occurrences and\u2026<\/p>\n

\u2014 Launchnodes (@launchnodes) October 11, 2023<\/a><\/p><\/blockquote>\n

Lido said stakers on the protocol are not affected<\/a> other than a reduction in daily rewards that will be reflected in the next rebase on Oct. 12.<\/p>\n

The staking provider also confirmed that the Lido DAO has an insurance fund of 6,230<\/a> staked-ETH, worth $9.5 million, and will be used to mitigate the slashing impact \u2014 but by design it does not trigger automatically.<\/p>\n

Lido added<\/a> that stETH holders will be compensated once the \u201ccover method\u201d has been decided, while Launchnodes has pledged<\/a> to reimburse all losses incurred to Lido. <\/p>\n

Related: <\/em><\/strong>Ethereum staking services agree to 22% limit of all validators <\/em><\/strong><\/a><\/p>\n

The liquid staking protocol<\/a> said the process isn\u2019t automatic because it is impossible to know what the total losses will be ahead of time.<\/p>\n

Lido is by far the largest liquid staking protocol, with $13.8 billion in total value locked on its protocol, according<\/a> to DefiLlama. The next largest is Rocket Pool at $1.7 billion.<\/p>\n

Only 226 validators<\/a> (0.04% of all validators) in the Ethereum ecosystem have been slashed since the launch of the Beacon Chain on Dec. 1, 2020 up until late February 2023.<\/p>\n

Magazine:<\/em><\/strong> <\/em><\/strong>DeFi Dad, Hall of Flame: Ethereum is \u2018woefully undervalued\u2019 but growing more powerful<\/em><\/strong><\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Ethereum staking protocol Lido Finance has disclosed its protocol saw 20 slashing events due to a series of infrastructure and signer configuration issues from validators operated by Launchnodes. The incident occurred on Oct. 11 at about 3:30 pm UTC, according to Launchnodes. In an Oct. 11 post on X, Lido said Launchnodes’ validators nodes are […]<\/p>\n","protected":false},"author":2,"featured_media":172606,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[235,203,210,234,231,232,237,238,236,233],"class_list":["post-172605","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain","tag-bitcoin","tag-crypto-currency","tag-elon-musk","tag-ethereum","tag-hyperledger","tag-ibm","tag-mining","tag-nodes","tag-spacex","tag-tesla"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/172605","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=172605"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/172605\/revisions"}],"predecessor-version":[{"id":172608,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/172605\/revisions\/172608"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/172606"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=172605"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=172605"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=172605"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}