Lido Finance to discontinue its products on Polygon starting Dec. 16

Lido Finance, a leading liquid staking protocol in the DeFi space, has recently announced its decision to discontinue its staking operations on the Polygon network. This strategic move comes as the protocol aims to refocus its efforts on the Ethereum ecosystem, citing low adoption, the transition to zkEVM technology on Polygon, and a renewed emphasis on Ethereum as primary reasons for the sunsetting of its Polygon products.

The decision to sunset Lido on Polygon follows a community vote and extensive discussions within the Lido DAO. Despite initial optimism surrounding the launch of Lido on Polygon in 2021, the product faced challenges such as limited user adoption, low staking rewards, and the resource-intensive nature of maintaining operations. The shift in the Polygon ecosystem towards zkEVM technology further reduced the demand for liquid staking solutions, leading to a reevaluation of Lido’s presence on Polygon.

The discontinuation process will commence on December 16, 2024, when the interface for Lido on Polygon will stop accepting new staking transactions. Users will have until June 16, 2025, to withdraw their staked MATIC through Lido’s interface before withdrawals will only be accessible via blockchain explorer tools. During a temporary pause in operations between January 15 and January 22, 2025, users will not be able to make withdrawals. It is imperative for users to unstake their assets before the deadline to ensure a smooth transition.

With a total value locked (TVL) of $38.4 billion, Lido Finance remains a key player in the liquid staking market. While discontinuing its Polygon products, the protocol reaffirms its commitment to adapting to market changes and prioritizing its Ethereum-based services.

In conclusion, Lido Finance’s decision to sunset its staking operations on Polygon reflects the protocol’s strategic realignment towards Ethereum and its dedication to maintaining a strong presence in the DeFi space. Users are encouraged to take timely action to avoid any disruptions in their staking activities.