Lido DAO Pauses Polygon Staking from February 3rd to 10th as Part of the Sunsetting Process

During this period, no withdrawals will be processed.

Lido DAO has announced that Lido on Polygon will be temporarily paused from February 3rd to February 10th as part of the sunsetting process. During this period, no withdrawals will be processed.

The Lido project is a liquid staking platform for PoS (Proof-of-Stake) cryptocurrencies, allowing users to stake their tokens on Lido and receive tokenized versions of their staked assets at a 1:1 ratio. Lido supports staking for Ethereum 2.0 and other Layer 1 PoS blockchains, including Solana, Polygon, Polkadot, and Kusama. By issuing these tokenized assets, users can maintain liquidity and participate in DeFi activities for additional yield while earning staking rewards.

The mechanism of operation for Lido is centered around its unique liquid staking solution. Users can stake any amount of PoS assets, addressing the issues of illiquidity, complexity, and centralization present in traditional PoS staking. When a user deposits assets to Lido, they’re staked on the relevant blockchain via Lido's smart contract, which manages deposits, withdrawals, fund delegation, fees, token minting and burning, and more. Users receive a tokenized version of their deposited funds (stAsset tokens), which can be used in DeFi protocols and dApps to earn additional rewards.

Regarding the LDO token, it’s important to note that LDO is the native governance token of the Lido protocol. Holders of LDO tokens have the power to vote on proposals in the Lido DAO (Decentralized Autonomous Organization). The DAO governs the protocol and makes crucial decisions regarding its operation, ensuring alignment with stakeholder interests. The DAO manages fee parameters and distribution, addition and removal of node operators, and other aspects of the protocol, maintaining transparency and decentralization.