stETH Deposits to Optimism Paused for Upgrade

GK8 by Galaxy has integrated support for institutional custody of stETH, Lido's liquid staking token. This development combines: - GK8's Impenetrable Vault technology - uMPC cosigning framework - Access to over $30B of stETH liquidity The integration provides institutional asset managers with a secure pathway to earn Ethereum staking rewards at scale. This follows Komainu's similar move in May 2025, indicating growing institutional interest in liquid staking. Learn more: [GK8 Custody Launch](http://blog.lido.fi/gk8-galaxy-launches-custody-for-lido-steth)

Lido Labs is hosting its inaugural Tokenholder Update Call on August 14 at 2:00 PM UTC. Key discussion points: - Strategic roadmap and priorities - Financial updates - Long-term LDO token alignment - Protocol success metrics This follows the successful Community Update Call #2, which covered: - Delegation systems - Community and Institutional Staking - SimpleDVT Module implementation - Dual Governance structure [Register for the call](http://lu.ma/5pavcvdj)

The SEC has issued significant guidance confirming that liquid staking tokens like stETH are not securities, marking a major milestone for the industry. Key points: - SEC's Division of Corporation Finance explicitly states liquid staking doesn't involve securities - Commissioner Peirce compares it to traditional deposit receipts - **Removes major regulatory uncertainty** for Lido and similar protocols This clarity opens new opportunities: - Easier integration with U.S. financial institutions - Reduced barriers for DeFi protocols using stETH - Potential expansion of centralized exchange support The guidance particularly benefits Lido, the leading liquid staking protocol, by legitimizing its model in one of the world's largest markets.

A security vulnerability in Lido's CSM and permissionless verifier contract was discovered and successfully mitigated. Key points: - No exploitation occurred - stETH holders and CSM Node Operators remained unaffected - Fix implemented through Oracle mitigation and DAO vote 190 - Whitehat researcher received bug bounty via Immunefi program Related update: InfStones Node Operator voluntarily exiting all validators and rotating to new keys as precautionary measure. All ETH will be re-staked through protocol's standard withdrawal process. More details: [Lido Research Forum](https://research.lido.fi/t/post-mortem-csverifier-weak-validation-of-the-historical-block-gindex-user-funds-remain-safe/10466)

Lido has launched the CSM v2 Testnet, introducing significant improvements to their permissionless staking module. The update features five key components: - Identified Community Stakers system - Differentiated Reward Structure - Enhanced Performance Oracle - Precision Strike System - EIP-7002 Support The platform enables Ethereum validation with as little as 2.4 ETH (potentially down to 1.3 ETH). Since October, CSM has attracted 440+ node operators and represents over 2% of Lido stake. Testnet participation counts as experience for becoming an Identified Community Staker, offering benefits like lower bonds and higher rewards. [Get started with the CSM Guide](http://docs.lido.fi/run-on-lido/csm)