The Protocol: Lido Avoids Major Hack

Welcome to The Protocol, CoinDesk's weekly wrap-up of the most important stories in cryptocurrency tech development. This is Margaux Nijkerk and Sam Kessler, CoinDesk’s Tech team.
In this issue:
Hacking Attempt on Lido Results in 1.4 Ether Lost From Oracle ProviderBitcoin DeFi Security Improves as Rootstock Boosts Hashrate ShareEthereum’s Next Upgrade ‘Fusaka’ Could Cut Layer-2 and Validator CostsTelegram Cracks Down on $8 billion Crypto Crime Marketplace
Network News
LIDO AVOIDS MAJOR SECURITY BREACH: Lido, Ethereum’s largest liquid staking protocol, avoided a major security incident after one of its nine oracle keys was compromised in what appears to be a low-impact but serious breach involving validator operator Chorus One. Lido secures over 25% of all ether (ETH) staked on Ethereum, making it one of the most systemically important protocols in the Ethereum ecosystem. The compromised key was tied to a hot wallet used for oracle reporting, leading to the theft of just 1.46 ETH ($4,200) in gas fees. No user funds were affected, and no broader compromise was detected, per X posts from both Lido and Chorus One. — Tim Craig