Lido Finance to Discontinue Polygon Staking Operations
- Lido Finance will end Polygon staking operations starting December 16, 2024.
- Users must unstake MATIC before June 16, 2025, to avoid using explorer tools.
- The decision is due to low adoption, zkEVM transition, and focus on Ethereum.
Lido Finance, the largest liquid staking protocol in the decentralized finance (DeFi) ecosystem, has announced plans to sunset its staking operations on the Polygon network.
The decision, finalized through a community vote and extensive discussions within the Lido DAO, marks a strategic shift in focus toward Ethereum.
Reasons for Sunsetting
The decision to discontinue Lido on Polygon is influenced by various factors:
- Challenges with limited user adoption
- Insufficient staking rewards
- Resource-intensive operations
- Transition of Polygon ecosystem to zkEVM technology
These factors have led to a reevaluation of Lido’s presence on Polygon and a strategic decision to prioritize Ethereum.
Discontinuation Process
The sunsetting process for Lido on Polygon will unfold as follows:
- Starting December 16, 2024, new staking transactions will no longer be accepted.
- Users have until June 16, 2025, to withdraw their staked MATIC through Lido’s interface.
- After June 16, 2025, withdrawals will only be possible via blockchain explorer tools.
- StMATIC token holders will cease to receive staking rewards.
During January 15-22, 2025, Lido’s operations on Polygon will temporarily pause, with withdrawals being unavailable.
It is essential for users to unstake their assets before the June 16, 2025, deadline to ensure a smooth transition.
Despite discontinuing its Polygon products, with a Total Value Locked (TVL) of $38.4 billion, Lido Finance remains a key player in the liquid staking market, emphasizing its adaptability to market changes and focus on Ethereum-based services.
