Ethereum staking protocol Lido Finance has experienced 20 slashing events due to infrastructure and signer configuration issues from validators operated by Launchnodes. The incident occurred on October 11, resulting in the offline status of Launchnodes’ validators nodes and the cessation of slashings while the root cause is being investigated. Slashing refers to a validator breaching a blockchain’s proof-of-stake consensus rules, leading to the removal of the validator or a portion of their staked-Ether being slashed. Launchnodes acknowledged the slashing events and stated that they are investigating the issue and implementing measures to prevent further occurrences. Lido assured stakers on the protocol that they are not directly affected, except for a reduction in daily rewards. The Lido DAO has an insurance fund of 6,230 staked-ETH, which will be used to mitigate the slashing impact. However, the fund does not trigger automatically and compensation for stETH holders will be determined through the “cover method.” Launchnodes has pledged to reimburse all losses incurred to Lido. Lido is the largest liquid staking protocol, with $13.8 billion in total value locked, while Rocket Pool is the second largest at $1.7 billion. Since the launch of the Beacon Chain in December 2020, only 226 validators (0.04% of all validators) in the Ethereum ecosystem have been slashed.
This News Article was automatically generated by Bob the Bot (AI)
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Europe |
| Countries | |
| Sentiment | neutral |
| Relevance Score | 0 |
| People | None |
| Companies | Lido Finance, Lido DAO, Rocket Pool, Launchnodes, DefiLlama |
| Currencies | Ethereum |
| Securities | None |
