“As of yet, there is no indication that the weakness was exploited, and wstETH holders on ZKsync are not affected. No other bridges are affected,” Lido Finance said on X. Withdrawals from ZKsync and token transfers were described as unaffected. Nevertheless, the platform moved swiftly, pausing new bridge deposits out of what it described as “an abundance of caution.”

Lido Finance temporarily halts deposits

Lido has not publicly shared the technical nature of the flaw, referring only to a “potential weakness” reported in the ZKsync wstETH bridge endpoint contract, the smart contract layer that facilitates the movement of wrapped staked ETH between the Ethereum mainnet and the ZKsync Layer 2 network.

Lido integrated ZKsync as its fifth Layer 2 deployment, developed in collaboration with Matter Labs and the txSync team to build canonical wstETH bridging smart contracts. The ZKsync bridge went live on 3 January 2024, following a Lido DAO governance vote the previous month. Lido has an emergency multisig mechanism that enables it to disable deposits and withdrawals on the ZKsync side when necessary. That lever appears to have been pulled in this instance.

Lido wrote, “A fix has been prepared and will be audited and deployed via the next scheduled on-chain Lido governance omnibus vote (late March / early April), after which deposits will resume.” The reliance on a governance vote to deploy the fix reflects both the decentralized structure of Lido’s operations and the procedural safeguards built into its upgrade process.

A fix is expected to come after its on-chain vote

For users and investors, it also means the timeline is subject to the mechanics of on-chain coordination, a reality that has historically introduced delays in decentralized finance protocols. Lido said updates would follow and that deposits would resume once the fix was live. The announcement has not helped the fortunes of the respective tokens, with markets unnerved by the prospect of a fix that will not arrive until at least late March and possibly early April.

Lido’s native governance token, LDO, has declined by more than 3.5% over the past 24 hours, trading at $0.3057. ZK, the native token of ZKsync’s parent network, has also dropped more than 3.1% to $0.01863 over the same period. However, both tokens were already on a decline before Lido’s announcement. The protocol controls roughly one-third of all staked ether on the Ethereum network, making it the single largest staking operator by a substantial margin.

Any security incident, or even the perception of one, carries systemic implications that extend well beyond the specific ZKsync integration. For now, existing wstETH holders on ZKsync can take some comfort from Lido’s assurances while withdrawals remain fully operational. Cryptopolitan reported earlier today that another project, Neutron, a BTCFi project that offers Bitcoin holders yields on their staked tokens, also paused certain services until at least March 9 after a security update, where it said” a whitehat flagged a vulnerability” in its code.

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Incident Triggers Swift Action from Lido DAO

The attack, which targeted one of Lido’s protocol reporting oracles, prompted a rapid response from the decentralized autonomous organization. Lido emphasized that the breach had no impact on the protocol’s core operations due to the structure of its oracle system, which requires a 5-of-9 consensus for data reporting.

Chorus One, the operator of the compromised oracle, reported the event as isolated and confirmed that an internal audit revealed no broader vulnerabilities. Blockchain data shows that the exploiter drained roughly $3,800 worth of ETH. Chorus One suggested the attack likely involved an automated system rather than a direct targeted exploit. The ongoing investigation is expected to conclude with a detailed postmortem.

Lido Highlights Oracle Redundancy and Decentralization

Lido’s head of validators, Izzy, explained that the oracle compromise would at most cause minor delays in stETH rebases, which would only significantly affect users engaged in leveraged DeFi positions. The system’s design includes multiple layers of security, and no single oracle can unilaterally impact the protocol’s operations.

The DAO proposal to replace the compromised oracle address has received unanimous support so far, although it has not yet reached quorum. Izzy added that Lido uses a multi-layered approach to oracle security, which includes decentralization and role separation to reduce potential risks. These measures helped prevent any meaningful disruption to staking services or token functionality.

Growing Focus on Cybersecurity as Crypto Losses Mount

The Lido situation brings out the rising security challenges being experienced by cryptocurrency firms. So far this year alone, over $2 billion in assets have been stolen as part of a running escalation in loss of assets through cyberattacks in the industry. In a major security leak this year, Bybit lost a whopping $1.4 billion – and the North Korean Lazarus group was found at fault. Hacken’s crypto fund reported $357 million in losses in April 2025. In Hacken at Token2049, CEO Dyma Budorin urged the industry to bolster its cyber security defenses and encourage this code audit integration. At the same time, the best leaders of the G7 are reviewing collective strategies to curb the ever-present cyber risks caused by hacking gangs supported by DPRK.

The post Lido Assures Protocol Security Following Oracle Breach and Emergency DAO Vote first appeared on Coinfea.

A financial lifeline for continued development

The P2P team has outlined a comprehensive budget for the next 12 months, which includes a development retainer of $200,000 per quarter, an annual marketing budget of $600,000, and $100,000 annually for customer support. In return for this financial backing, the team aims to capture more than 1% of Solana’s staking market share and further develop the product.

Since taking ownership of Lido on Solana from Chorus One in March 2022, the P2P team has made significant strides in both product and business development. They have updated the smart contract and reworked the frontend user experience, among other achievements. However, without the requested financial support, the team believes that achieving even a 2% market share in the current Solana market seems improbable.

The sunsetting scenario: A last resort

If the Lido DAO community cannot provide the requested financial support, the P2P team has proposed initiating a sunsetting process, similar to what happened with Lido on Polkadot and Kusama. This would involve gradually discontinuing support for Lido on Solana by February 2024. The sunsetting process would include steps like halting new staking deposits and voluntary node operator off-boarding from the pool.

Lido Finance is a dominant player in the liquid staking market on Ethereum, with $14 billion in total value locked. However, its presence on Solana is comparatively smaller, with about $50 million in locked value. The project also faces stiff competition from other players in Solana’s liquid staking niche, such as Marinade Finance and Jito.

The post Lido Finance on Solana appeals for $1.5 million in funding first appeared on Coinfea.