Lido on Polygon Sunset

Lido -

Over the coming months, Lido on Polygon will be effectively discontinued.

 

After extensive DAO forum discussion followed by a community vote, the sunsetting of the Lido on Polygon protocol was requested by LDO token holders and this process will begin shortly.

 

Below you will find a breakdown of the reasoning of the sunsetting, as well as key timelines and required actions for stMATIC token holders.

 

For more information, visit help.lido.fi/en/collections/3631122-polygon-matic-staking

 

Sunsetting Justification

Lido on Polygon began with a proposal submitted by Shard Labs in 2021. While initial expectations were high, Lido on Polygon has faced significant challenges in achieving its intended impact. Several factors have contributed to this situation: limited user adoption, insufficient rewards, resource-intensive maintenance requirements, and evolving ecosystem dynamics.

 

A key challenge has been the shifting landscape of DeFi activity, particularly with increased focus on zkEVM solutions. This transition has led to reduced demand for liquid staking solutions on Polygon POS, affecting Lido on Polygon's potential as a foundational DeFi building block. Additionally, alternative liquid staking solutions have been built within a ecosystem that proved smaller than initially anticipated.

 

These developments, combined with the LDO token holders’ strategic refocus on Ethereum as outlined in recent GOOSE and reGOOSE governance decisions, have prompted a thorough reevaluation of Lido protocol's presence on Polygon.

 

After extensive evaluation and a governance vote by LDO token holders, the decision was made to begin the sunsetting process for Lido on Polygon. For more insights into the decision-making process and discussion, please refer to the forum post: research.lido.fi/t/reevaluation-of-lido-on-polygon-state/8848 

 

Implications for Users

  • Discontinued Rewards: stMATIC holders will stop receiving network rewards throughout the sunsetting process.
  • Pre-Sunset Pause: The protocol will temporarily pause and then resume operations during January 15-22, 2025. No withdrawals can be processed until after the protocol resumes.
  • Withdrawal Process: Users can unstake their MATIC through the Lido on Polygon frontend until June 16, 2025.
  • Post-Sunset Access: After June 16, 2025, withdrawals will remain possible through explorer tools.

 

Unstaking instructions can be found here.

 

Key Dates

  • December 16, 2024: Lido on Polygon staking will be discontinued and no new stake will be accepted through the UI.
  • December 16, 2024 - June 16, 2025: A six-month transition period during which users can withdraw through the Lido on Polygon UI. 
  • January 15-22, 2025: Protocol will temporarily pause and then resume operations. No withdrawals can be processed during this period.
  • June 16, 2025: Frontend support concludes. After this date, withdrawals will only be possible through explorer tools.

 

Stay connected through Discord, Telegram, or Twitter for further updates regarding the sunsetting process.