On March 4th, it was reported that the Ethereum liquidity staking protocol Lido Finance recently announced that it has suspended new bridging deposits due to a potential security vulnerability found in the wstETH bridge contract endpoint on its ZKsync network. Lido stated in a notice that there are no signs of the vulnerability being exploited so far, and assets held by wstETH holders on ZKsync remain unaffected. Withdrawal and token transfer functions are still operating normally. This suspension is a precautionary measure aimed at reducing potential risks.
The issue involves the wstETH bridge contract endpoint on the ZKsync network. This smart contract is responsible for transferring staked ETH between the Ethereum mainnet and the ZKsync Layer 2 network. Although Lido has not disclosed specific technical details of the vulnerability, it has activated an emergency multi-signature mechanism to temporarily restrict bridging deposits to prevent potential attack vectors.
ZKsync is the fifth Layer 2 integration deployed by Lido. The bridging solution was developed jointly by Lido, Matter Labs, and txSync, with the goal of establishing a standardized cross-chain wstETH bridge contract. The wstETH bridging feature on ZKsync was launched in January 2024, following approval through governance voting by Lido DAO.
Lido stated that a fix for the vulnerability has been developed, but due to the protocol’s decentralized governance model, the patch must be reviewed and deployed through the next on-chain governance proposal. The current schedule estimates that the governance vote will take place from late March to early April 2026. Until the fix is officially implemented, the new bridging deposit function will remain suspended.
For DeFi users, this process reflects the security mechanism of decentralized governance and also indicates that the repair progress depends on on-chain voting coordination. Historical experience shows that upgrading or fixing vulnerabilities in DeFi protocols often takes a considerable amount of time to complete the community governance process.
In the market, related tokens have experienced short-term pressure. Lido’s governance token LDO dropped over 3.5% in the past 24 hours, trading around $0.305; meanwhile, ZKsync’s native token ZK also declined more than 3.1%, trading near $0.018. However, analysts note that both tokens were already in a downward trend before the announcement, and the security incident has further intensified market caution.
It is worth noting that Lido currently controls about one-third of the staked ETH on the Ethereum network, making it the largest single staking service provider. Therefore, even potential security risks could have spillover effects on the entire Ethereum staking ecosystem. Currently, Lido has confirmed that the withdrawal function for wstETH on ZKsync remains operational and user assets are not directly threatened.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
AIN (Infinity Ground) has risen 34.53% in 24 hours, with a market cap of approximately 18.6 million dollars
AIN (Infinity Ground) price surged 34.53% in 24 hours, with market cap reaching $18.6 million. The platform is a Web3-native development tool supporting natural language programming and cross-chain smart contract deployment, enhancing application development efficiency and attracting market attention. It has been listed on multiple mainstream exchanges, promoting liquidity and market awareness.
GateNews23m ago
GRASS (Grass) increased by 25.32% over the past 24 hours
Gate News Report: On March 17, according to Gate market data, as of press time, GRASS (Grass) is trading at $0.46, up 25.32% in the last 24 hours, with a high of $0.47 and a low of $0.34. The current market cap is approximately $112 million.
Grass is a network platform that rewards users for sharing unused internet bandwidth. Users can install the application with just three clicks and automatically earn rewards by sharing the unused portion of their internet connection with verified institutions. User participation is tracked through Grass Points, which help determine the amount of Grass Token rewards users receive over time. Grass cannot view user personal data or online activities, only sharing the unused portion of the connection.
GateNews1h ago
Crypto market rises for three consecutive days, PayFi sector leads gains with over 7% increase, BTC touches $76,000
On March 17, the crypto market continued its upward trend for the third consecutive day, with the PayFi sector leading gains at 7.22%. XRP rose 8.29%, Ethereum broke through $2,300, and the overall market showed strong performance with notable gains across multiple sectors.
GateNews1h ago
DEGO (Dego Finance) up 58.72% in 24 hours
Gate News - On March 17, according to Gate market data, as of press time, DEGO (Dego Finance) is trading at $1.39, up 58.72% in the past 24 hours, reaching a high of $1.42 and a low of $0.56. The current market cap is approximately $29.2 million, representing an increase of $10.8 million compared to the previous day.
## DEGO Recent Important News:
1️⃣ **Increased Market Attention Drives Price Appreciation**
DEGO has recently garnered widespread market attention, with multiple cryptocurrency asset information platforms reporting and tracking the token's real-time price movements and market data. This indicates that market participants' interest in DEGO has increased. Against the backdrop of growing market participant attention, trading activity has picked up, trading volume has increased, ultimately driving a strong surge in token price.
GateNews1h ago
XRP Today’s News: XRPL Develops Zero-Knowledge Proofs, $1.50 Becomes a Key Support and Resistance Level
XRP Ledger is developing zero-knowledge proof (ZKP) technology to enable selective privacy protection. Meanwhile, the ledger will support confidential tokens while balancing transparency and compliance. XRP is currently trading at $1.46, and in the short term needs to break through the key resistance of $1.50 to push higher toward more elevated targets.
MarketWhisper1h ago
ZEC (Zcash) increased by 19.57% over the past 24 hours, now trading at $274.71
As of March 17th, Zcash (ZEC) was trading at $274.71, up 19.57% in the last 24 hours. The project focuses on privacy protection, supporting private payments, and has gained market attention amid rising demand for privacy assets. The positioning of large holders reflects long-term confidence in the project. Recent changes in the development team have caused price volatility, but market confidence in Zcash is gradually recovering.
GateNews2h ago
