InfStones Temporarily Removes Ethereum Validators from Lido Finance
InfStones, a node operator affiliated with Lido Finance, is taking proactive security measures by temporarily removing its Ethereum validators from the liquid staking protocol. This action is in response to a vulnerability discovered by security researchers at dWallet Labs.
Vulnerability and Potential Risks
The vulnerability associated with the open-source library Tailon was identified in July 2023. According to dWallet Labs, exploiting this vulnerability could have allowed a hacker to obtain private keys of validators across different blockchain networks, potentially leading to losses exceeding $1 billion in cryptocurrencies like Ether and BNB.
Largest Liquid Staking Protocol on Ethereum
Lido Finance operates the largest liquid staking protocol on Ethereum, managing over 9.23 million Ether with a market value of more than $19 billion. The protocol allows users to deposit ETH and engage in network staking through validator nodes, which issue derivative tokens as representations of their deposits.
InfStones’ Role and Security Measures
InfStones operates ETH validator nodes for Lido Finance. They have verified that the vulnerability did not result in any key leakage or exploitation. However, as a proactive measure, InfStones has agreed to withdraw its validators and rotate to new keys. This decision is awaiting government approval.
Continuity and Stability
To maintain continuity and stability, the ether initially staked on the potentially affected validators will be redirected into the Lido protocol for re-staking.
Hot Take: InfStones Takes Proactive Steps to Address Vulnerability
In response to a substantial vulnerability uncovered by security researchers at dWallet Labs, InfStones, an important node operator affiliated with Lido Finance, has decided to temporarily remove its Ethereum validators from the liquid staking protocol. This proactive security measure aims to mitigate the potential risks associated with the vulnerability. The vulnerability, discovered in an open-source library called Tailon, had the potential to allow hackers to obtain private keys of validators across different blockchain networks, potentially resulting in significant financial losses. InfStones’ decision to rotate validator keys and withdraw validators demonstrates their commitment to ensuring the security and integrity of the Lido Finance ecosystem. By redirecting the staked assets into the Lido protocol for re-staking, InfStones is taking necessary steps to maintain continuity and stability.
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