The @osec_io team has shared the preliminary findings of its Liquid Staking Module audit with the Informal Cosmos Hub team.

The review did not raise any serious concerns. One potential bug, under very specific circumstances, is that some users may become unable to tokenize delegations using the LSM. If the vulnerability were to be exploited, these users would not be able to mint new LSM tokens. Users who already have LSM tokens would not be affected. This issue will be addressed shortly.

Overall, these findings have given us the confidence to move forward with Hydro’s first Pilot Round, with a small, locked cap of LSM shares for early users, later this week. This will allow projects, voters, and the committee to test Hydro while our team incorporates their feedback. You can read more about Hydro’s Pilot rounds here https://t.co/yL7T6TWTSE

We want to thank Ottersec again for their willingness to start the audit on such short notice, and @binary_builders for their incredible support in the process. We are committed to transparency and will share the finalized audit report once it is available.

In the longer term, Informal is advocating for a phased removal and replacement of LSM with a new framework, but this complex undertaking will take several months. In the meantime, a second audit funded by @ATOMAccelerator will be carried out by @zellic_io and will begin in the next couple of weeks.