Lido staking protocol breaks ties with Polygon
Decentralized liquid staking protocol Lido Finance announced it has started the process of discontinuing its staking services for the Polygon PoS chain after a vote in November that was approved by the community.
The Lido on Polygon sunset process has begun.https://t.co/icgidJsbqF
— Lido (@LidoFinance) December 16, 2024
See below for an overview of upcoming timelines and requirements 📆📜
Lido ends operation on Polygon
The Polygon PoS network's implementation enabled users to stake Polygon's MATIC tokens for liquid staking tokens, also known as static tokens. On Monday, the protocol ended the Polygon staking service and informed users that they could withdraw their money until June 16, 2025. According to the announcement, withdrawals will be possible using explorer tools after this date.
Lido to end Polygon services after low user demand
Several problems, such as high maintenance requirements, inadequate staking rewards, and the growing prominence of zkEVM technology in the DeFi space, were cited as reasons for the decision to leave Polygon. The announcement said that Lido reevaluated and eventually started the sunsetting of Lido on Polygon due to a number of factors.
The post added that "Lido on Polygon has faced significant challenges in achieving its intended impact. Limited user adoption, inadequate rewards, resource-intensive maintenance requirements, and changing ecosystem dynamics are some of the factors that have contributed to this situation."
Lido added that it had seen holders of LDO tokens turn their attention to Ethereum. Lido DAO authorized a plan earlier this year to introduce its "community staking module," which aims to increase the accessibility of Ethereum solo staking. Despite the news, POL is up 8.6% over the last 24 hours, according to CoinMarketCap.
Lido shuts down Solana staking service
For similar reasons, Lido, a leading liquid staking protocol by total value locked, decided to end its Solana staking service last year after $484,000 in losses exceeded $220,000 in revenue. On September 5th, Lido's peer-to-peer (P2P) team first suggested shutting down Lido on Solana, pointing to the platform's cheap fees and unsustainable financials. As of October 16, 2023, Lido no longer accepts staking requests.
What is Lido?
Lido is a protocol that provides services for liquid staking. In October 2020, Jordan Fish, Vasiliy Shapovalov, and Konstantin Lomashuk founded Lido. With approximately $39.3 billion in TVL as of this writing, Lido is the largest liquid staking protocol for Ethereum and the top DeFi protocol by total value locked. Users can stake their cryptocurrency on networks such as Kusama, Polkadot, Polygon, Solana, and Ethereum.
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