[Security Disclosure] MetaMask Staking Precautionary Out of Order Exits

Following an investigation into an infrastructure compromise, MetaMask Staking (ex Consensys Staking) has taken precautionary steps to protect client assets related to its operated Ethereum validators.

These steps include exiting its Ethereum (ETH) validators in the Lido protocol, and will likely incur foregone rewards as well as possible downtime penalties should validators be taken offline in the near future to reduce risks related to potential network penalties. Relevant validators have begun the exit process, with the final validators expected to be exited (but not fully withdrawn) by the end of October 7th, 2026.

No action is required from stETH holders. ETH exited from MetaMask Staking-operated validators is expected to return to the protocol gradually as the relevant validators complete the exit, withdrawal, and re-entry cycle, which is estimated to take approximately up to 45 days due to the extended entry queue. As a reminder, staking operations are non-custodial in nature and MetaMask does not manage withdrawal keys for staking on behalf of clients.

As always, the Lido Protocol’s diverse Node Operator set and other security systems including the ad hoc reserve fund (of over 6,750 stETH), are designed to contain and mitigate disruptions to the normal operations of the protocol, in addition to other potential routes.

A full investigation is underway, and further updates will be shared as they become available. For further details, please refer to the MetaMask Staking release linked below.

14 Likes

Due to the incident described above, Lido contributors propose setting the following target limit parameters for MetaMask Staking (ex Consensys Staking) in both CMv1 and CMv2:

  • targetLimit = 0
  • targetLimitMode = 1 (soft)

These parameters mean that no new deposits will be allocated to MetaMask Staking (ex Consensys Staking) Node Operators in both CMv1 and CMv2.

The change will be implemented by adding the following calls to the next on-chain vote:

  • On 0x55032650b14df07b85bF18A3a3eC8E0Af2e028d5 call updateTargetValidatorsLimits(uint256 _nodeOperatorId, uint256 _targetLimitMode, uint256 _targetLimit) with _nodeOperatorId = 21, _targetLimitMode = 1, _targetLimit = 0
  • On 0xDa5F930cE326EB5205085D66c72A4E79d60cB8C1 call updateTargetValidatorsLimits(uint256 nodeOperatorId, uint256 targetLimitMode, uint256 targetLimit) with _nodeOperatorId = 6, _targetLimitMode = 1, _targetLimit = 0
4 Likes

The on-chain vote #206 is now live and includes the proposal to set MetaMask Staking (ex Consensys Staking) Node Operator target validators limit to 0 in CMv1 and CMv2 (soft mode).

The vote will be open for your “For” or “Against” input until the end of the main phase: Oct 17, 13:13 UTC.

For instructions on how to verify the vote items, please follow this guide.

3 Likes

The on-chain vote #206 has reached the required support quorum and has been enacted. The target validators limit change will take effect once Dual Governance Proposal #15 is executed, currently scheduled for Friday, October 23, at 13:14 UTC.