The Lido Finance Ethereum staking protocol experienced 20 slashing events due to infrastructure and signer configuration issues from validators operated by Launchnodes. The incident occurred on October 11 and resulted in the removal of the validators from the network. The slashing impacted approximately 20 Ether, worth $31,000, and additional penalties. The root cause of the issue is currently being investigated. Lido DAO has an insurance fund of 6,230 stETH, worth $9.5 million, which will be used to mitigate the slashing impact. Stakers on the protocol will see a reduction in daily rewards reflected in the next rebase on October 12. Lido is the largest liquid staking protocol with $13.8 billion in total value locked. Only 226 validators in the Ethereum ecosystem have been slashed since December 2020.
