Staking Protocol Lido Announces Sunsetting of Products on Polygon
Staking protocol Lido has announced a timeline for the sunsetting of its products on Polygon in the coming months.
The decision to discontinue all operations on Polygon was made by the Lido Finance team on December 16, following a DAO forum discussion and a community vote approving the move. The initial proposal for this decision was put forward by Shard Labs in 2021 and was ultimately approved by Lido DAO (LDO) token holders.
One of the main reasons behind this decision is the challenges faced by Lido on Polygon, including limited user adoption and the evolving dynamics of the DeFi ecosystem. The transition of Polygon to zkEVM has also played a role in the decline of liquid staking activity, further prompting the decision to sunset operations on the network.
Furthermore, the Lido community’s governance resolutions to refocus on Ethereum (ETH) have influenced the decision to discontinue staking services on Polygon.
The sunsetting of staking on Polygon will commence on December 16, 2024, with a six-month transition period until June 16, 2025, allowing users to unstake their Polygon (MATIC) tokens. It is advised for users to unstake their stMATIC prior to June 16, 2025, to ensure a smooth unstaking experience using the Lido on Polygon UI.
“It is highly advised to unstake stMATIC prior to June 16, 2025 to ensure a smooth unstaking experience using the Lido on Polygon UI.”
Lido Finance team
During the temporary pause of Lido on Polygon operations from January 15 to January 22, 2025, withdrawals will be unavailable. Frontend support for staking on the Polygon protocol will end on June 16, 2025, after which withdrawals will only be possible through explorer tools.
As the largest liquid staking protocol in the DeFi market, Lido currently boasts a total value locked of $38.4 billion, as per data from DeFiLlama. This TVL significantly surpasses that of competitors such as Rocket Pool and Jito, with values standing at $2.9 billion and $3.1 billion respectively.