Lido Freezes SOL Staking, Stranding $20 Million

Over $20 million worth of SOL remains inaccessible on Lido, a staking platform, due to ongoing technical issues. Lido's termination of support for Solana led to the inability of users to withdraw their staked SOL, impacting over 31,000 individuals. Despite initial efforts to resolve the issue, newly identified bugs in the smart contracts have hindered progress. The technical team plans to consult with Lido DAO to determine next steps and resolve the matter, while SOL's price has taken a 13% hit in the past four days.

Lido Halts SOL Staking, Leaving Over $20 Million Locked in Limbo

A recent announcement by Satoshi Club, a prominent crypto news outlet, has revealed that over $20 million worth of SOL remains locked on the Lido platform following the abrupt suspension of its Solana staking services on February 4. The broadcaster reported that despite the discontinuation, a substantial 112,923.29 SOL, belonging to approximately 31,585 users, still languishes on the platform.

The unavailability of these funds stems from a technical glitch within Lido's smart contracts, which has prevented users from withdrawing their staked SOL. According to recent disclosures, the glitch is caused by newly discovered bugs that have hindered the withdrawal functionality.

Pavel Pavlov, Product Manager at P2P, the organization responsible for operating Lido on Solana, has acknowledged the issue in a Discord message dated March 30. Pavlov identified the root cause as a flaw in the "split function" used during the withdrawal phase of the smart contract.

The complexity of the smart contract has made it challenging and time-consuming to rectify the issue. Pavlov has also indicated that the technical team plans to engage in consultations with Lido DAO to determine the best course of action and establish a timeline for resolution.

The revelations about the locked SOL coincide with a significant decline in its price, which has dropped by 13% over the past four days. At the time of writing, SOL has recovered slightly to $183.12, but remains below its April 1 peak of $204.25.

Unstaking SOL on Lido has proven to be a particular challenge for users since the February 4 discontinuation, especially for those unfamiliar with the platform's command-line interface (CLI). The situation has caused mounting frustration among the affected users, who are eagerly awaiting a resolution to access their staked assets.