Lido DAO Initiates Emergency Vote After Chorus One Oracle Hacked

Lido DAO, the governing body of the Lido liquid staking protocol, has initiated an emergency vote to replace a compromised oracle. The oracle, operated by Chorus One, was drained of its Ether balance in an overnight attack. The incident, which occurred on May 11, 2025, was attributed to a suspected leak of the private key associated with the Chorus One node. Lido Finance emphasized that the issue is isolated to the Chorus One oracle and does not affect the broader system. The team also clarified that the problem was not due to a coding issue in any particular blockchain oracle or software.

Chorus One acknowledged the exploit and stated that it was likely due to a hot wallet private key leak. The company is taking steps to enhance security by setting up a new machine to ensure the safety of its operations moving forward. This incident underscores the critical need for robust cybersecurity measures in decentralized finance (DeFi) as digital financial systems become more complex and interconnected.

The emergency vote by Lido DAO highlights the importance of swift action in response to security breaches. By initiating the vote, Lido DAO aims to mitigate further damage and restore confidence in the protocol. The vote involves rotating the compromised oracle, which is a key component in the HashConsensus contracts for the Accounting Oracle and Validators Exit Bus. This process is essential to ensure the integrity and security of the Lido staking protocol.

The incident serves as a reminder of the vulnerabilities that exist within DeFi platforms. As the world's monetary, trade, and business systems increasingly move onchain, the attack surface for cyber threats expands. This event emphasizes the need for continuous vigilance and the implementation of advanced security protocols to protect against such attacks. The DeFi community must remain proactive in addressing security concerns to maintain trust and ensure the stability of decentralized financial systems.