Lido Provides Update on stETH Yield Calculation Issue
On July 26, Lido, a leading liquid staking protocol, addressed a minor discrepancy observed during its routine stETH yield recalculation. The issue was identified in data reported by the protocol's accounting oracle, which temporarily excluded a batch of unconfirmed validator stakes from its calculations.
Understanding the Discrepancy
The recalculation displayed an annual percentage yield (APY) of 2.04% for stETH, slightly below the expected figure of approximately 2.15%.
Key facts for users:
- This variance was not caused by validator slashing or any security incident.
- User funds, including deposited ETH and held stETH tokens, remain completely safe and are not at risk.
- The discrepancy is solely related to a temporary data reporting omission and does not affect the actual staked assets or users' entitlement to rewards.
Team Response and Next Steps
The Lido development team promptly initiated an investigation. A thorough review of the total balances of all Lido validators on the Ethereum consensus layer, at the time of the oracle report and thereafter, confirmed no anomalies or risks to underlying assets.
The current focus of the team is twofold:
- Root Cause Analysis: Investigating the oracle reporting mechanism to determine why the unconfirmed stakes were not included.
- Fix and Reconciliation: Once the root cause is identified and resolved, the missed assets and their accrued rewards will be fully accounted for in the next scheduled yield recalculation cycle.
Lido has assured users that no action is required on their part. All staking, redemption, and trading functions for stETH operate normally. A comprehensive report with technical details will be shared with the community upon conclusion of the investigation.