Slashing Incident involving Launchnodes Validators - Oct 11, 2023

Update:

At this time, the situation is stable as the Launchnodes team worked through the night to slowly bring the rest of the validator infrastructure back up. The root cause of the slashing incident is understood, with small details still being investigated.

Slashed validator penalties currently amount to 20.04 ETH and are estimated to increase to 23.06 ETH by time of withdrawal. Infra downtime penalties and overall missed rewards (excl. EL rewards) amount to 5.663 ETH (including slashed validators).

Launchnodes immediately expressed their desire to compensate stakers at the soonest possible time, and so disbursed 25.663 ETH prior to today’s rebase, which means that stakers will see no reduced rewards for the day resulting from the outage and slashing.

Once future penalties and missed rewards for the slashed validators are finalised (i.e. the validators are withdrawn), a final calculation will be made and Launchnodes have indicated that they will also cover this amount resulting in no lost rewards for stETH holders.

The compensation transaction for the day’s reduced rewards can be found here.

A full post-mortem will be posted here in the coming days.

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