# DefiPlaza exploit -- request for comment

**URL:** https://research.lido.fi/t/defiplaza-exploit-request-for-comment/8241
**Category:** Proposals
**Created:** [August 31, 2024, 11:18am UTC](https://research.lido.fi/t/defiplaza-exploit-request-for-comment/8241 "2024-08-31T11:18:46Z")
**Posts on this page:** 1
**Showing post:** 2

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### Author: ![Hasu](https://dub1.discourse-cdn.com/flex013/user_avatar/research.lido.fi/hasu/32/5328_2.png) [@Hasu](https://research.lido.fi/u/Hasu)
#### Post date: [August 31, 2024, 4:04pm UTC](https://research.lido.fi/t/defiplaza-exploit-request-for-comment/8241/2 "2024-08-31T16:04:36Z")

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I would defer to my comments [here](https://research.lido.fi/t/sushi-routeprocessor2-post-exploit-request-for-comment/4383/7) and [here](https://research.lido.fi/t/a-decision-on-an-outflow-of-40-eth-from-the-lido-dao-treasury-to-aid-in-the-sushi-recovery/4492/10). Even though no official policy on how to handle mev exploits has been ratified by the DAO to date–mostly from a lack of motivated individual to push for it–all of the arguments from previous discussions still apply:

1. 95% of these funds are not the DAO’s to command but belong to stakers and node operators.
2. The other 5% the DAO has received as a service fee for processing the block and is no more obligated to return the fee than a subway operator is obligated to return a train ticket bought by a bank robber.
3. In order for Ethereum to be [neutral infrastructure](https://www.paradigm.xyz/2022/09/base-layer-neutrality), it is important that validators and node operators act as close to “dumb pipes” as possibles. They more discretion they exert today, the more discretion they will be _asked_ to exert in the future.
4. If Lido DAO agreed to arbitrate _any_ MEV transactions, it would open it up to demands to arbitrate _all_ MEV transactions, down to a single DEX user getting sandwiched. This violates not only the previous principle, but also goes against the DAO’s [singular focus on security and governance minimization](https://research.lido.fi/t/hasus-goose-submission-proposed-goals-for-lido-dao-to-consider/5590).

So while I am very sorry about your loss and sympathize with the proposal from a personal perspective, actually acting on it would set a negative precedent and lead to a bad outcome for Lido and Ethereum on a systemic level.

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