Lido has raised a technical concern over Ethereum’s planned Glamsterdam upgrade, saying a one-time builder onboarding mechanism could interfere with how staking protocols protect validator deposits. Speaking at the ACDC #189 developer call, Lido engineering lead Dmitry Gusakov said the issue affects cases where multiple deposits share the same validator public key. Under Ethereum’s current deposit rules, the first valid deposit sets withdrawal credentials, a behavior staking protocols use to prevent credential manipulation by sending a small amount of ETH first and topping up later once the validator appears with the expected credentials. According to Gusakov, the special onboarding path for builders during the fork transition could change how later pending deposits under the same public key are interpreted. That creates a third possible outcome: the validator does not appear, while the deposited ETH is credited to the builder instead. Lido proposed preserving a distinction between validator deposits and builder deposits during the one-time onboarding process, but core developers rejected the change, citing timing. Sepolia has already activated under the current specification, and a Hoodi client release is being prepared, meaning a behavioral change now could require redeploying Sepolia and running extra tests.
Lido engineering lead Dmitry Gusakov warned on the ACDC #189 developer call that Ethereum’s Glamsterdam upgrade could interfere with the deposit protection logic used by staking protocols, creating a risk that staking deposits could be hijacked.
The issue involves multiple deposits that share the same validator public key. Under Ethereum’s current deposit rules, the first valid deposit determines the withdrawal credentials. Staking protocols rely on that behavior to guard against credential manipulation, often by depositing a small amount of ETH first and then sending the remaining funds after the validator appears with the expected credentials.
A transition-period edge case
Gusakov said the special one-time onboarding mechanism introduced for builders in Glamsterdam could change how later pending deposits under the same public key are interpreted during the fork transition. In that case, staking protocols could face a third outcome: the validator never appears, while the deposited ETH is credited to the builder.
Lido’s proposed fix was rejected
Lido proposed a fix that would preserve a distinction between validator deposits and builder deposits during the one-time onboarding process. Core developers declined to adopt the change, citing timing concerns.
The main reason, according to the report, is that the Sepolia testnet has already been activated under the current specification, while a Hoodi client version is also in preparation. Changing the behavior at this stage could require redeploying Sepolia and carrying out additional testing.
Scope of the issue
The problem affects the onboarding flow during the fork transition rather than the ongoing deposit processing rules. Even so, its consequences could extend to deposits that are still waiting in the queue.
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