Originally published on: December 17, 2024
Staking protocol Lido recently announced its decision to discontinue services on the Polygon network in the upcoming months. The move comes as a result of limited user adoption, evolving ecosystem dynamics, and a strategic refocus on Ethereum.
After extensive discussions and a community vote where 99% of Lido DAO Token (LDO) holders favored the proposal, the decision to wind down operations on Polygon was finalized. The team cited challenges such as resource-intensive maintenance requirements, insufficient rewards, and the shifting landscape of decentralized finance (DeFi) as reasons for the discontinuation.
As a result, Lido staking requests on Polygon are no longer available as of December 16. Users can still withdraw their staked MATIC through the Lido interface on Polygon until June 16, 2025. All rewards have been discontinued, and withdrawals will be temporarily suspended between January 15 and 22 next year.
Key dates to remember for stMATIC holders include:
– December 16, 2024: Staking on Lido for Polygon will be discontinued.
– December 16, 2024 – June 16, 2025: Transition period for withdrawals.
– January 15-22, 2025: Temporary suspension of withdrawals.
With a total value locked (TVL) of $38 billion as of December 16, according to DefiLlama data, Lido is the largest liquid staking protocol in the DeFi market. Despite the discontinuation of services on Polygon, the protocol continues to focus on Ethereum and explore new opportunities in the DeFi space.
Last year, Lido also ceased operations on the Solana blockchain after a community vote. This decision reflects the protocol’s commitment to sustainability and adaptability in the ever-changing DeFi landscape.
As DeFi projects like Lido and Aave navigate evolving ecosystems and user preferences, the industry continues to witness dynamic shifts and strategic adjustments. Stay tuned for more updates on the market outlook and investment opportunities in the DeFi sector. Subscribe to our newsletter for critical insights every Monday.
