Blockchain security firm SlowMist reported on X (September 10) that Lido's LDO token contract contains a known security flaw, enabling attackers to execute "fake deposit" attacks on exchanges. The vulnerability arises because the LDO token contract doesn't trigger transaction reversals for transfers exceeding a user's actual balance—instead, it returns "false" without indicating failure.
🚨SlowMist Security Alert🚨
There's a known operational issue in the LDO Token contract that has recently been exploited by malicious actors for “fake deposit” attacks on exchanges.
— SlowMist (@SlowMist_Team) September 10, 2023
Key Findings:
- Exploit Mechanism: Attackers can submit inflated LDO transfers to exchanges, potentially crediting accounts with non-existent funds.
- ERC20 Compliance Gap: SlowMist warns many token contracts deviate from standards, urging thorough code audits before integration.
Lido's Response:
The Lido team clarified this behavior aligns with ERC20 standards, citing Ethereum's EIP documentation co-authored by Vitalik Buterin:
"Both LDO and stETH (and Lido governance) remain safe... Integration guides will be updated to highlight LDO specifics."
Proactive Measures:
- Exchange Vigilance: Verify token contract return values beyond transaction success/failure status.
- Developer Action: Lido plans to update LDO token integration guidelines to mitigate risks.
FAQs
Q1: Is my LDO/stETH at immediate risk?
A: No. Lido confirms the behavior is ERC20-compliant, and funds remain secure.
Q2: How can exchanges prevent fake deposits?
A: Implement dual checks for both transaction success and contract return values.
Q3: Are other tokens vulnerable to similar exploits?
A: Yes. SlowMist advises comprehensive contract analysis before listing any new token.
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Keywords: LDO token, stETH security, fake deposit attack, ERC20 standards, SlowMist report, Lido response, blockchain vulnerabilities
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