- Lido will stop staking on Polygon in June 2025 owing to poor adoption.
- The unstaking phase begins on December 16, with a six-month transition window.
As a seasoned researcher with years of experience in the DeFi space, I find Lido’s decision to discontinue its Polygon staking service by June 2025 a significant development. Having closely followed Lido’s growth and expansion since their inception, it’s intriguing to see them reallocate resources back to Ethereum, the network where most activity happens.
Lido Finance, the leading liquid staking platform within the DeFi sector, has announced it will cease operations for its Polygon staking service, effective as of December 16, 2024. This decision was made following a discussion within the Lido Decentralized Autonomous Organization (DAO) and approval from the community in support of the action. The proposal to shut down the service was submitted by Shard Labs back in 2021, which was subsequently backed by the DAO holders during a community vote.
Here are a few reasons why Lido chose to halt its services on Polygon: As reported, two significant factors played a role in this decision – low user adoption and a transformation in the decentralized finance (DeFi) landscape. Moreover, liquid staking activities within the network have dwindled due to Polygon’s implementation of zkEVM technology. Additionally, Lido governance appears to be focusing their efforts back on Ethereum as most activity occurs there.
Timeline of Sun-Setting and Transition
The team has set a depreciation date and given a transition period for adjustment. Starting on December 16, 2024, users will no longer be able to stake new assets using the Polygon platform. However, until June 16, 2025, there will be a six-month grace period during which users can withdraw their previously staked tokens. Lido advises that users should withdraw their stMATIC tokens by this date for a smooth transition process through the Polygon interface.
From January 15th to 22nd, 2025, there will be a brief interruption in staking activities on the Polygon network. This pause means that withdrawals will temporarily not be possible during this period. Additionally, support for interface assistance with Polygon protocol staking is set to end on or after June 16th, 2025. After this date, users can only retrieve their funds using explorer tools.
As a researcher, I am noting a pivotal change in Lido’s approach within the DeFi sphere. While Lido has established itself as a prominent figure with a TVL (Total Value Locked) of $38.4 billion in liquid staking, it is now directing its resources primarily towards the Ethereum network and its burgeoning ecosystem.
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2024-12-19 23:36