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- Lido Finance will finish Polygon staking operations starting December 16, 2024.
- Customers should unstake MATIC earlier than June 16, 2025, to keep away from utilizing explorer instruments.
- The choice is due to low adoption, zkEVM transition, and focus on Ethereum.
Lido Finance, the most important liquid staking protocol within the decentralized finance (DeFi) ecosystem, has announced plans to sundown its staking operations on the Polygon network.
The choice, finalized via a community vote and intensive discussions within the Lido DAO, marks a strategic shift in focus towards Ethereum.
What has induced the sunsetting?
The choice stems from a number of challenges confronted by Lido on Polygon since its inception in 2021, following a proposal by Shard Labs.
Regardless of preliminary optimism, the Lido on Polygon product struggled with restricted consumer adoption, inadequate staking rewards, and the resource-intensive nature of sustaining operations.
The transition of the Polygon ecosystem towards zkEVM expertise additional diminished the demand for liquid staking options, diminishing Lido’s impression as a foundational DeFi element.
Moreover, governance resolutions comparable to GOOSE and reGOOSE emphasised Lido’s strategic precedence to focus on Ethereum, contributing to the reevaluation of its presence on Polygon.
Discontinuing Lido on Polygon
The method of discontinuation begins on December 16, 2024, when the interface for Lido on Polygon will not settle for new staking transactions.
Customers will then have a six-month transition interval, ending on June 16, 2025, to withdraw their staked MATIC via Lido’s interface. After this era, withdrawals will solely be accessible by way of blockchain explorer instruments.
All through the sunsetting course of, stMATIC token holders will not obtain staking rewards. Between January 15 and January 22, 2025, Lido’s operations on Polygon will quickly pause, throughout which withdrawals is not going to be doable.
Customers are strongly suggested to unstake their belongings earlier than the June 16, 2025, deadline to guarantee a easy transition.
Lido Finance, with a complete worth locked (TVL) of $38.4 billion as of December 2024, stays a dominant participant within the liquid staking market. Whereas discontinuing its Polygon products, the protocol’s choice underscores its dedication to adapting to market modifications and prioritizing its Ethereum-based providers.
