- 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.
What has caused the sunsetting?
The decision stems from several challenges faced by Lido on Polygon since its inception in 2021, following a proposal by Shard Labs.
Despite initial optimism, the Lido on Polygon product struggled with limited user adoption, insufficient staking rewards, and the resource-intensive nature of maintaining operations.
The transition of the Polygon ecosystem toward zkEVM technology further reduced the demand for liquid staking solutions, diminishing Lido’s impact as a foundational DeFi component.
Additionally, governance resolutions such as GOOSE and reGOOSE emphasized Lido’s strategic priority to focus on Ethereum, contributing to the reevaluation of its presence on Polygon.
Discontinuing Lido on Polygon
The process of discontinuation begins on December 16, 2024, when the interface for Lido on Polygon will no longer accept new staking transactions.
Users will then have a six-month transition period, ending on June 16, 2025, to withdraw their staked MATIC through Lido’s interface. After this period, withdrawals will only be accessible via blockchain explorer tools.
Throughout the sunsetting process, stMATIC token holders will no longer receive staking rewards. Between January 15 and January 22, 2025, Lido’s operations on Polygon will temporarily pause, during which withdrawals will not be possible.
Users are strongly advised to unstake their assets before the June 16, 2025, deadline to ensure a smooth transition.
Lido Finance, with a total value locked (TVL) of $38.4 billion as of December 2024, remains a dominant player in the liquid staking market. While discontinuing its Polygon products, the protocol’s decision underscores its commitment to adapting to market changes and prioritizing its Ethereum-based services.
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