Lido Confirms Protocol Safety Amid Oracle Hacking Incident

# Lido DAO Ensures Protocol Safety After Oracle Breach; Emergency Vote to Replace Compromised Address Underway Lido DAO, the governing body of the Lido protocol, has confirmed that the protocol remains secure and fully operational despite a recent oracle-related security breach. This breach led to the theft of approximately 1.46 Ethereum (ETH), valued at $3,800 (about 5.3 million KRW). In response, the DAO has initiated an emergency vote to rotate the compromised oracle address. # Chorus One Confirms No Broader Threat to Protocol Following Breach Chorus One, the operator of the compromised oracle, has stated that the breach does not present additional threats to the broader ecosystem. On May 11, the organization announced on X (formerly Twitter), “Following a thorough inspection of the entire infrastructure, no broader damage has been identified.” The company confirmed that the breach involved unauthorized access to a hot wallet used for voting within the Lido Oracle and reported that 1.46 ETH was stolen. Chorus One is conducting a detailed investigation and has pledged to release a comprehensive report. > “On May 10, a hot wallet managed by Chorus One used for Lido Oracle voting was accessed by an unauthorized entity, resulting in the transfer of 1.46 ETH. Our team is working tirelessly with @LidoFinance to investigate. As a result…” — Chorus One (@ChorusOne) May 11, 2025 # Lido’s Quorum System Ensures Protocol Integrity The Lido DAO reiterated the protocol’s security, emphasizing the stability of its oracle architecture, which operates on a "5/9 quorum" structure. This decentralized framework ensures data validity only when at least five out of nine validators, including oracle operators, reach a consensus. Lido publicly confirmed, “The Lido protocol remains secure and fully operational due to this design.” > “⚠️ Emergency Lido DAO vote announcement: Rotate single Lido Oracle relating to compromised Chorus One oracle private key. Stakers remain unaffected. The protocol stays secure and fully operational. The oracle system is robust by design with a 5/9 quorum, and all other...” — Lido (@LidoFinance) May 11, 2025 Izzy, a Lido representative in charge of validator-related operations, noted that, in a worst-case scenario, the incident might only cause minor delays in stETH (staked Ethereum) rebasing. Any impact would be minimal and mainly affect stETH holders using leveraged DeFi strategies. # Emergency Oracle Address Vote Gains Momentum But Awaits Quorum The ongoing Lido DAO vote to replace the oracle address has unanimous support but is still awaiting the required quorum. Izzy highlighted the complex nature of oracles and their critical role in DeFi’s diverse operational landscape. “Lido mitigates risk through decentralization, task separation, and a multi-layer audit system,” he added. # Broader Implications for the DeFi Ecosystem This incident emphasizes the critical need for robust cybersecurity protocols as global finance, trade, and business systems increasingly embrace on-chain and digital infrastructure solutions. These events serve as a stark reminder of the vulnerabilities that accompany the rapid evolution and growing complexity of DeFi ecosystems. As the Lido DAO and its partners work to enhance oracle security, stakeholders across the DeFi space face an ongoing challenge: ensuring trust in systems that underpin innovative but inherently risky financial networks.