According to staking protocol, Lido, the sunsetting of its products will be on Polygon in the coming months.
After a community vote and discussion in a DAO forum, the Lido Finance team declared on December 16 that it would shut down all activities on Polygon.
The team claims that Lido DAO token holders discontinued Lido’s support on Polygon, with Shard Labs submitting the original proposal in 2021.
Lido listed several issues that affected the choice, such as the decentralized finance (DeFi) ecosystem’s changing dynamics and low user uptake. Liquid staking activity has also decreased due to Polygon switching to zkEVM.
The sunsetting of the Polygon services is also partly due to governance resolutions from the Lido community that aim to shift the attention back to Ethereum.
Starting December 16, 2024, staking on Polygon will be discontinued; subsequent staking through the Polygon interface will not be permitted.
Users can unstake their Polygon during a six-month transition period from December 16, 2024, to June 16, 2025. Lido Finance team on X:
It is highly advised to unstake stMATIC prior to June 16, 2025 to ensure a smooth unstaking experience using the Lido on Polygon UI.”
Lido on Polygon operations will be temporarily suspended from January 15 to January 22, 2025, at which time withdrawals will not be possible.
The Polygon protocol’s frontend staking support will terminate on June 16, 2025. Withdrawals will only be feasible via explorer tools after this date.
According to DeFiLlama data, Lido is the biggest liquid staking protocol in the DeFi market, with $38.4 billion in total value currently secured. Its TVL is significantly larger than Jito’s and Rocket Pool’s, which were $2.9 billion and $3.1 billion, respectively.
