Crypto Times Logo Black
Google News Follow Banner
  • News
    • Market
    • Bitcoin
    • Ethereum
    • Altcoins
    • Regulations & Policies
    • Price Analysis
    • DeFi News
    • Blockchain News
    • Industry
  • Exclusive
    ExclusiveShow More
    Richard Heart speaking in front of a microphone wearing a gold patterned Versace hoodie and HEX pendant.
    Who Is Richard Heart? From HEX Crypto Millions to Istanbul Detention
    Gold Bitcoin coin with a CPI U.S. Inflation chart and Federal Reserve building
    US CPI Data: Inflation May Hit 3.7%, What to Expect for Bitcoin?
    Cracked Ledger hardware crypto wallet with exposed circuit boar
    Ledger CryptoBilis Hack Explained: $93M Stolen, Wallets Tampered
    Hunter Biden’s $LAPTOP Post-Mortem: What Went Wrong With the Token Launch
    Elon Musk and SpaceX composite image with the Indian flag and Bitcoin
    India vs Elon Musk: Starlink’s Global Wall of Bans, and the Crypto Thread Running Through It
  • Opinion
    OpinionShow More
    Donald Trump speaking at a presidential podium with the White House and U.S. Capitol building in the background.
    Trump Just Declared the Super Intelligence Era in the “Unites States.” So Who Controls It?
    Comparison of Bybit 12-hour, Bitget 85-hour, and WazirX 463-day response timers
    Bitget, Bybit Paid in Hours; WazirX Lost Least in Hacks at $235M, Held Users Hostage for 463 Days
    Jackson Hole 2026: Crypto Is No Longer Outside the Fed’s Door
    Jackson Hole 2026: Crypto Is No Longer Outside the Fed’s Door
    The Architecture of Trust Same Routes, New Risks in Global Tokenisation
    The Architecture of Trust: Same Routes, New Risks in Global Tokenisation
    The Architecture of Trust What 4,000 Years of Trade Teach Us About RWA Tokenisation
    The Architecture of Trust: What 4,000 Years of Trade Teach Us About RWA Tokenisation
  • Learn
    • Explained
    • How To
    • Insights
  • IndicesNew
    • India USDT Premium Index
    • India USDC Premium Index
  • Videos
  • More
    • About Us
    • Our Authors
    • Contact Us
    • Editorial Policy
    • Daily Crypto Puzzles
The Crypto TimesThe Crypto Times
  • All News
  • Market
  • Bitcoin
  • Ethereum
  • Altcoins
  • Regulations & Policies
  • Blockchain
  • DeFi
  • Industry
  • Exclusive
  • Opinion
Search
  • News
    • Market
    • Bitcoin
    • Ethereum
    • Altcoins
    • Regulations & Policies
    • Price Analysis
    • Blockchain
    • DeFi
    • Industry
    • Exclusive
    • Opinion
  • Learn
    • Explained
    • How To
    • Insights
  • IndicesNew
    • India USDT Premium Index
    • India USDC Premium Index
  • Quick Links
    • About Us
    • Our Authors
    • Contact Us
    • Editorial Policy
    • AI Policy
    • Sponsored & Advertorial Policy
    • Daily Crypto Puzzles
  • Videos
  • Glossary
Follow US
© 2026 By Crypto Times. All Rights Reserved.
DeFi News

Lido Reports Minor Validator Slashing in Community Staking Module

The protocol has assured stakers after minor CSM slashing, citing bond mechanism; total penalties under 1 ETH, fully covered by operator’s bond.

Written By Kenrodgers Fabian
Published 2026-03-13
Make The Crypto Times preferred on GoogleGoogle
Lido Reports Minor Validator Slashing in Community Staking Module

Key Highlights

  • Minor Lido slashing minorly penalized six validators, under $100, fully covered by operator bond—stakers unaffected.
  • CSM’s bond system isolates risk; even past slashing incidents confirm the module keeps losses contained.
  • Lido continues to expand with its TVL sitting at $19.45 million as of Mid-March.

Lido Finance, the leading liquid staking protocol on Ethereum, reported a minor slashing incident in its Community Staking Module (CSM) yesterday. At 20:38 UTC, Lido DAO contributors detected the event involving a permissionless Node Operator.

“Stakers have no reason to worry as the protocol continues to operate normally,” Lido said in a post on X, highlighting its bond mechanism designed to cover such incidents. Total projected penalties remain minimal, under 1 ETH, fully secured by the operator’s posted bond.

[Minor CSM Operator Slashing Incident] At 20:38 UTC this evening, Lido DAO contributors became aware of a limited slashing event associated with a Node Operator in the permissionless Lido Community Staking Module (CSM). Stakers have no reason to worry as the protocol continues to…

— Lido (@LidoFinance) March 13, 2026

The incident affected six validators, with penalties totaling less than 0.047 ETH, about $100. If no other issues arise, total fines should stay under 1 ETH. To put this in context, Lido’s daily rewards naturally fluctuate between 0.3 and 2 ETH, so this event barely makes a dent. The system automatically takes any penalties from the operator’s bond once the validators leave the Ethereum network, meaning regular stETH holders won’t lose a single penny.

CSM’s risk-isolation design proves effective

The Community Staking Module (CSM) was deployed in late 2024 and was further updated to v2 in October 2025. The CSM is intended for smaller stakers and for individuals who wish to run a node but do not wish to stake the full 32 ETH. With CSM, operators can stake much smaller amounts, such as 1.3-2.4 ETH.

On top of that, every operator posts a stETH bond, which acts as a safety net against mistakes, downtime, or misbehavior. This recent minor slashing shows that the module’s risk-control system works exactly as intended.

Lido has faced similar situations before. On October 11, 2023, twenty validators run by Launchnodes were slashed. The operators quickly shut down the affected nodes and investigated the cause. Compared to that, this latest incident is tiny, proving once again that CSM’s safety measures successfully contain any issues without affecting the wider network.

Platform growth and expansion beyond Ethereum staking

Despite the fluctuations in the crypto market, Lido has continued to maintain its dominance in liquid staking. In fact, Lido has recorded a TVL of approximately $19.45 billion in value, according to DeFiLlama. 

Lido TVL growth and key DeFi metrics overview
Source: DefiLiama

This shows that users are increasingly trusting and using the platform. Lido earns around $48.7 million in revenue each year and collects about $486.9 million in fees annually. 

Additionally, Lido expanded its yield offerings with the new EarnUSD vault. This product allows stablecoin holders to deposit USDC and USDT and earn compounded yields across DeFi strategies. “The approach blends prudent lending with carefully selected higher-yield opportunities,” Lido noted, marking its first stablecoin-focused vault. 

Also Read: Trader Loses $50M in AAVE Collateral Swap Routed Through CoW Protocol

Disclaimer: The information researched and reported by The Crypto Times is for informational purposes only and is not a substitute for professional financial advice. Investing in crypto assets involves significant risk due to market volatility. Always Do Your Own Research (DYOR) and consult with a qualified Financial Advisor before making any investment decisions.

Follow The Crypto Times on Google News to Stay Updated!      Google News

Daily Crypto Puzzles
Tickerdle Tickerdle Crypto Connections Crypto Connections Crypto Crossword Crypto Crossword
TAGGED:Ethereum (ETH)
Share This Article
Whatsapp Whatsapp LinkedIn Telegram Copy Link

Daily Crypto Puzzles

Tickerdle crypto game Tickerdle Crypto Connections game Crypto Connections Crypto Crossword game Crypto Crossword

Latest News

Puffer Finance mascot standing in front of a red declining stock chart.
SkyAI Slides 4.4% as Shareholder Demands Answers Over 70% SOL Treasury Reduction 
Blockaid company signage with white lettering mounted on a dark grey wall.
Blockaid Reports $86K Drained in UNCX Vesting Pool Exploit
Four crypto corporate logos on circular coins with a red declining stock chart in the background.
Crypto Stocks IREN, ABTC, HOOD, MSTR Drop as US Inflation Hits 3.7%
Coins.ph Says User Funds Are Safe Amid Service Disruptions
Coins.ph Says User Funds Are Safe Amid Service Disruptions
BingX EU app displayed on a smartphone screen against the Austrian flag and European Union flag.
BingX EU Secures Austrian MiCA License, Eyes 29 EEA Countries

Find Us on Socials

You may also like

Physical gold Bitcoin and silver Ethereum coins side by side against a stock market chart.

Bitcoin and Ethereum Fall as US Inflation Rises to 3.7%

Babylon and Aave logos side by side on a blue and purple gradient background.

Babylon Proposes Native BTC Collateral and New Spokes on Aave V4

US CPI Live Today: Inflation Data, Bitcoin Price, Fed Rate Discussion

US CPI Data Live Today: Inflation Rises to 3.7% in September, Exceeds Forecasts

Bitcoin and Ethereum coins framed by a U.S. CPI indicator and the Capitol building

Bitcoin, Ethereum Short Liquidations Hit $58M as BTC Holds $83.5K Ahead of US CPI

The Crypto Times Logo PNG

News

All News
Market News
Bitcoin News
Ethereum News
Altcoin News
Regulations & Policies
DeFi News
Blockchain News
Industry News

Sections

Exclusive
Opinions
Learn
Insights
Videos
Glossary

India Premium Indices

Stablecoins
USDT
USDC

Play

Daily Crypto Puzzles
Tickerdle
Crypto Connections
Crypto Crossword

Company

About Us
Our Authors
Masthead
Editorial Policy
AI Policy
Advertorial Policy
Contact Us
Career

Follow Us

X-twitter Linkedin Telegram Youtube Instagram
© 2026 The Crypto Times | Protocols And Tokens Pvt Ltd.
DMCA.com Protection Status
  • Terms and Conditions
  • Disclaimer
  • Privacy Policy
  • Cookie policy
Do Not Sell or Share My Personal Information