The Protocol: Lido Avoids Major Hack

4 hours ago

Welcome to The Protocol, CoinDesk's play wrap-up of the astir important stories successful cryptocurrency tech development. This is Margaux Nijkerk and Sam Kessler, CoinDesk’s Tech team.

In this issue:

Hacking Attempt connected Lido Results successful 1.4 Ether Lost From Oracle Provider
Bitcoin DeFi Security Improves arsenic Rootstock Boosts Hashrate Share
Ethereum’s Next Upgrade ‘Fusaka’ Could Cut Layer-2 and Validator Costs
Telegram Cracks Down connected $8 cardinal Crypto Crime Marketplace

Unknown artifact benignant "divider", specify a constituent for it successful the `components.types` option

Network News

LIDO AVOIDS MAJOR SECURITY BREACH: Lido, Ethereum’s largest liquid staking protocol, avoided a large information incidental aft 1 of its 9 oracle keys was compromised successful what appears to beryllium a low-impact but superior breach involving validator relation Chorus One. Lido secures implicit 25% of each ether (ETH) staked connected Ethereum, making it 1 of the astir systemically important protocols successful the Ethereum ecosystem. The compromised cardinal was tied to a blistery wallet utilized for oracle reporting, starring to the theft of conscionable 1.46 ETH ($4,200) successful state fees. No idiosyncratic funds were affected, and nary broader compromise was detected, per X posts from some Lido and Chorus One. — Tim Craig Read more.

BITCOIN DEFI BLOSSOMING: Decentralized finance (DeFi) connected the Bitcoin blockchain whitethorn inactive beryllium successful its infancy comparative to Ethereum, but Bitcoin DeFi (BTCFi) is becoming safer and cheaper, crypto analytics steadfast Messari said successful a caller report. A cardinal subordinate is Rootstock, 1 of the oldest Bitcoin layer-2 projects, crypto analytics steadfast Messari said successful its "State of Rootstock" report. Rootstock is present secured by 81% of Bitcoin's full hashrate, meaning miners that relationship for magnitude the hashrate are besides approving transactions connected the furniture 2. The fig was conscionable 56% earlier the the onboarding of Foundry and Spiderpool, the world's largest and sixth-largest mining pools, respectively, successful February. — Jamie Crawley Read more.

FUSAKA PLANNING BEGINS: After the successful deployment past week of Pectra, Ethereum's biggest upgrade successful much than a year, the network's halfway developers are already shifting absorption to the adjacent large concatenation upgrade: Fusaka. Pectra, the biggest codification change to Ethereum since the Merge successful 2022, introduced cardinal changes aimed astatine making staking easier for institutions, improving wallet accessibility, and boosting transaction efficiency. Developers person already begun readying for Fusaka, the network’s adjacent upgrade, and person frankincense acold agreed to see an Ethereum Improvement Proposal (EIP) called "PeerDAS" that could assistance the web enactment larger "blobs" of transaction data. — Margaux Nijkerk Read more.

TELEGRAM CRACKS DOWN ON CRYPTO CRIME MARKETPLACE: Messaging app Telegram has closed thousands of channels belonging to suspected Chinese crypto-crime marketplaces aft caller probe shed airy connected the situation, according to Elliptic. The closure follows a study published by the blockchain analytics steadfast connected Tuesday into the fast-growing Telegram-based marketplace called Xinbi Guarantee. The Colorado-incorporated marketplace has processed implicit $8.4 cardinal worthy of transactions utilizing Tether’s USDT stablecoin since 2022. It facilitates services relating to wealth laundering, operating crypto scam compounds and different illicit services, specified arsenic intimidation and enactment trafficking, according to Elliptic. — Tim Craig Read more.

Unknown artifact benignant "divider", specify a constituent for it successful the `components.types` option

In Other News

Robinhood Markets (HOOD), the California-based fiscal services company, said it agreed to bargain Canadian crypto steadfast WonderFi (WNDR) for $178.98 million. The all-cash acquisition values WonderFi astatine 36 Canadian cents per share, a 41% premium implicit its closing terms anterior to the announcement. — Omkar Godbole Read more.
Stock and crypto trading level eToro (ETOR) debuted astatine $52 a stock connected the Nasdaq exchange. The institution raised astir $312 cardinal from investors by selling 6 cardinal shares astatine a terms of $52 a piece. The listing values the institution astatine $4.2 billion. EToro became the archetypal U.S. crypto institution to spell nationalist pursuing the marketplace uncertainty wrought by President Donald Trump's tariff actions. — Helene Braun Read more.

Unknown artifact benignant "divider", specify a constituent for it successful the `components.types` option

Regulatory and policy

The Gibraltar authorities said it plans to found the world's archetypal rules for the clearing and colony of crypto derivatives, creating a regulatory model to amended marketplace integrity and trim cardinal risks. Working with the Gibraltar Financial Services Commission (GFSC) and crypto speech Bullish (whose owner, Bullish Group, is besides the genitor of CoinDesk), the authorities has built a model implicit the past six months that tailors accepted fiscal clearing regulations to the virtual plus market. — Jamie Crawley Read more.

Unknown artifact benignant "divider", specify a constituent for it successful the `components.types` option