Lido Finance Shuts Down Polygon Staking Service

Lido Finance, the biggest liquid staking protocol in the DeFi space, has recently declared that it is shutting down its Polygon staking service.

DeFi liquid staking giant Lido Finance (CRYPTO: LDO) has announced that it will be shutting down its Polygon staking service, effective December 16, 2024.

The move comes after discussions within the Lido Decentralized Autonomous Organization and a vote by the community to approve the action. Lido DAO members had voted in favor of a proposal submitted by Shard Labs in 2021.

Several factors contributed to Lido's decision to discontinue services on Polygon. The protocol noted two key drivers: limited user adoption and changing DeFi dynamics.

Moreover, liquid staking activity within the network has been declining as Polygon integrates zkEVM technology. Lido governance also aims to increase its attention to Ethereum, where the majority of activity is concentrated.

Timeline for Sun-Setting and Transition:

The team has outlined a depreciation schedule and a grace period for the transition.

Beginning December 16, 2024, new staking will no longer be available through the Polygon interface.

This grace period will last for six months, expiring on June 16, 2025. During this time, users can still unstake any tokens that were previously staked.

Lido advises users to unstake their stMATIC tokens by this date to ensure a seamless process through the Polygon UI.

There will be a brief pause in staking operations on Polygon from January 15 to 22, 2025, during which withdrawals will be temporarily halted.

On or after June 16, 2025, the interface will no longer support staking on the Polygon protocol, and users will only be able to withdraw funds using explorer tools.

This marks a significant shift in Lido's focus within the DeFi landscape. Boasting a TVL of $38.4 billion, Lido is a major player in the liquid staking space, but its attention is now turning towards concentrating resources on the Ethereum network and its burgeoning ecosystem.