As stated by Lido, "This behavior [vulnerability in the smart contract] is expected and conforms to the ERC20 token standard. Both LDO and stETH (and Lido governance) remain safe."
Crypto staking platform Lido announced that Lido DAO (LDO) and Lido Staked Ether (stETH) tokens are secure from fake deposit attacks affecting crypto exchanges.
On September 10, on-chain security platform SlowMist tweeted about a vulnerability in the LDO smart contract that allowed hackers to carry out fake deposit attacks. As its name suggests, this exploit occurs when a malicious actor uses the existing security loopholes in smart contracts to add counterfeit tokens to their account. As a result, the hacker succeeds in increasing their asset balance without actually purchasing the tokens.
Soon, Lido replied to SlowMist’s tweet, assuring the crypto community that LDO and stETH tokens are safe from the exploits. The staking platform’s X (formerly called Twitter) account mentioned that the vulnerability is not unique to LDO as it is built into all ERC20 cryptocurrencies.
Lido agreed to address the security issues by updating its LDO integration guides. It is worth noting that Lido has neither confirmed nor denied the occurrence of fake deposit attacks on its platform.
Meanwhile, the prices of LDO and stETH tanked shortly after the announcement. They have since resumed an uptrend, with Lido DAO costing $1.46 while stETH is being traded at $1,594. Unfortunately, their volumes have shrunk over the last 24 hours.
Written by
Ayush Pande
Ayush Pande is a hardware, gaming, and crypto writer based in India. He's a tech enthusiast who's fascinated by the potential of blockchain technology.
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