Liquid staking protocol Lido said an anomaly in its daily stETH rebase caused token holders to receive a lower-than-expected annual percentage rate (APR), while stressing that no user funds were ever at risk.

Lido issues stETH to users who stake ETH through the protocol, allowing them to retain a liquid token while validator rewards accrue on Ethereum. Because stETH is widely integrated across decentralized finance, the accuracy and timing of Lido’s oracle reports are important not only for daily yield calculations but also for protocols that reference stETH balances or collateral values.

On the day in question, Lido’s accounting oracle reported a daily rebase APR of 2.04%, below the expected 2.15%. According to Lido contributors, the difference was traced to a single in-flight validator deposit of 32 ETH that was unintentionally left out of the oracle report.

The issue was initially detected by the protocol’s accounting oracle, after which Lido’s technical contributors began an immediate review. The team verified the aggregate balance of Lido validators on Ethereum’s Consensus Layer at the time of the report and confirmed that the validator set was fully accounted for. Lido said the omitted deposit was a reporting edge case, not a protocol-level failure or slashing event.

stETH rebases adjust token balances each day to reflect accrued staking rewards. As a result, any under-calculation can temporarily affect holder yields until the accounting is corrected. Lido told users that no action was required while contributors investigated the root cause.

Today's stETH rebase has completed as expected and includes the ETH missing from yesterday's under-calculated rebase (with an extrapolated APR of 2.29%). An update has been made and audited to the protocol oracle which should improve report speed and aid in the investigation of… — Lido (@LidoFinance) July 26, 2026

Today's stETH rebase has completed as expected and includes the ETH missing from yesterday's under-calculated rebase (with an extrapolated APR of 2.29%). An update has been made and audited to the protocol oracle which should improve report speed and aid in the investigation of…

Automatic safeguards and resolution

Lido said its protocol includes automated guardrails that cap permissible deviations in daily rebase values. Because the actual delta remained within the allowed threshold—specifically, 3.6% of total value locked (TVL) within a 36-day window—the automated circuit breakers were not triggered.

The team said that if the miscalculation had been significantly larger, the safeguards would have automatically stopped settlement of the oracle report. Lido said that mechanism is designed to prevent downstream liquidations on lending markets that use stETH as collateral.

The next day’s rebase was completed as expected and included the ETH that had been omitted from the prior report. That rebase produced an extrapolated APR of 2.29%, which Lido said accounted for the earlier under-calculation.

Lido has deployed an audited update to the protocol oracle, intended to improve reporting speed and help detect similar edge cases. Contributors are continuing to review the root cause, and a full post-mortem is expected to be published in the coming days. Lido said the incident was isolated and reiterated that validator balances remain secure.