Lido Key Compromise — $22B at Risk?

Alpha Team
May 12, 2025

Lido Oracle Key Breach Sparks Concern

Oracle Key Compromise: Lido Finance faced a security scare when an oracle key, managed by Chorus One, was compromised, draining 1.46 ETH ($3,800). Initial panic suggested Lido’s $22B total value locked (TVL) was at risk, but no user funds were lost. Lido’s DAO swiftly initiated an emergency vote to replace the compromised key, reassuring users.

Protocol Stays Secure: Early fears of a catastrophic loss of Lido’s $22B TVL were dispelled by its robust 5-of-9 quorum system, which limited the breach’s impact. Strategic advisor Hasu explained, “The oracle isn’t a multi-sig… No user deposits were at risk.” The system’s design ensured the protocol remained operational with no further compromises. The Lido DAO vote to rotate the compromised address has unanimous support but hasn’t reached quorum yet.

Ongoing Investigation: Chorus One is conducting a thorough review of its infrastructure, promising a detailed post-mortem report to clarify the breach’s cause. Lido’s co-founder Vasiliy Shapovalov emphasized that risk mitigation is embedded in the protocol’s design, calming user concerns. Users are encouraged to monitor Lido’s forum for updates on the investigation and the final vote outcome to stay informed. Read More.

️ On today's Top Picks:

💸 Strategy $MSTR buys 13,390 $BTC for ~$1.34B.
🎁 PumpFun launches Creator Revenue Sharing.
🪂 Solana Name Service to launch $SNS airdrop.
🤝 US and China reach trade deal.

Read time: ⏰ 6 minutes

Crypto News

• ⭐️ Strategy $MSTR buys an additional 13,390 Bitcoin $BTC for ~$1.34B at ~$99,856 per BTC; now holds 568,840 worth ~$58B.

• Metaplanet $3350.T buys an additional 1,241 Bitcoin $BTC for ~$126.7M at $102,119 per BTC; now holds 6,796 BTC worth $699M.

• David Bailey, CEO of Bitcoin Magazine, and holding company Nakamoto raise $710M and merge with KindlyMD to establish Bitcoin $BTC treasury-backed entity.

• Defi Dev Corp $DFDV buys an additional 172,670 Solana $SOL for ~$23.6M at ~$136.81 per SOL; now holds 595,988 SOL worth ~$103M.

• PumpFun deposits 132,573 Solana $SOL worth ~$23M into Kraken; deposited a total of 2,188,092 SOL worth ~$382M into Kraken in 2025.

• Amber International launches $100M Crypto Reserve Plan; to start with Bitcoin $BTC; Ethereum $ETH, Solana $SOL, BNB $BNB, and $XRP.

• BitGo secures regulatory approval from Germany BaFin; to expand its services across the EU's member countries.

• Digital Asset Investment Products saw inflows of $882M last week; Bitcoin $BTC $867M inflows, Ethereum $ETH $1.5M inflows, Solana $SOL $3.4M outflows.

Alpha

• ⭐️ PumpFun launches Creator Revenue Sharing; 50% of PumpSwap Revenue is now shared with Coin Creators.

• Phantom launches support for Sui $SUI network; currently supports Bitcoin $BTC, Ethereum $ETH, Solana $SOL, Polygon $POL, and Base networks.

• Optimism $OP launches new pools for Superstacks; Superchain OGs can get an additional 2x multiplier on all pools.

• Exponential launches YO (Yield Optimizer); Exponential previously raised $14M in Seed funding led by Paradigm in 2022.

• Treehouse to close Games Room on May 26th; exchange credits for Nuts before close, unused credits to be burned.

• MultipliFi launches Season 2; to launch BTC yield (xBTC) & distribute 30% of the total ORBs in Season 2; 50% of the total ORBs distributed in Season 1.

• List of Upcoming TGEs, Listings, & Releases by ICO Analytics.

• ICYMI Ethereum $ETH R1 launches donation page; Ethereum R1 is a stage 2 rollup aiming to raise 1000 ETH.

Airdrops

• ⭐️ Solana Name Service to launch $SNS airdrop claim on May 13th; .sol domain holders and several Solana-based communities are eligible.

• ICYMI Weekly Airdrop Recap by Earndrop.

• ICYMI Resolv launches $RESOLV airdrop registration; closes on May 16th.

• ICYMI Space and Time launches $SXT airdrop claim; testnet users, Community NFT holders, & more are eligible.

• ICYMI Doodles launches $DOOD airdrop; Doodle collectible holders and several Solana-based communities are eligible.

Finance News

• ⭐️ US & China reach trade deal; US to cut tariffs on Chinese goods to 30% from 145% for 90 days; China to lower tariffs on US goods to 10% from 125% for 90 days.

• US President Trump says the US has achieved a "total trade reset" with China this weekend; to speak with China's President Xi "maybe" at the end of the week.

• ~$2.2 Trillion added to the US stock market today amid trade deal between the US and China.

• Microsoft $MSFT & OpenAI potentially renegotiating their partnership; Microsoft has yet to approve OpenAI's corporate restructuring plans.

• Google $GOOGL to pay $1.375B to settle US State of Texas data privacy violations; lawsuit alleged it had collected and used biometric data of millions of Texans without their consent.

• Key Events This Week by The Kobeissi Letter.

Security and Exploits

• ⭐️ Lido $LDO oracle (1 of 9) signing key compromised; Lido DAO initiates emergency vote to rotate the oracle node; protocol remains secure and stakers are unaffected.

• Ledger Discord server hacked after an attacker compromised a moderator's account; Ledger has since regained control of the server and is taking additional precautions to reinforce its security.

Token Unlocks

• Starknet $STRK / ~$22M / MAY 15th
• Sei $SEI / ~$14M / MAY 15th
Sourced from Tokenomist

Funding

• Turtle Club raises $6.2M in Seed funding led by THEIA.

• DoubleUp raises $4M in Pre-Seed & Seed funding led by Karatage.

The Degen Farmer

Top stablecoin yield farms of the day, more than $3,000,000 in TVL. DYOR and step up your farming game!

PROTOCOL	ASSETS	APY
Notional V3 (Ethereum)	PTUSDE26MAR2025	59.66%
Indigo (Cardano)	IUSD	35.64%
Storm Trade (Ton)	USDT	28.25%
Meridian AMM (Move)	USDT.EUSDC.E	27.15%
Superlend (Etherlink)	MTBILL	23.49%
Kai Finance (Sui)	SUIUSDT	21.57%
Resolv (Ethereum)	STUSR	20.48%
Synthetix V3 (Base)	USDC	17.75%

. . .

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. . .

That’s it for today’s edition! See you soon.

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