Lido Shuts Down Staking on Polygon Network

Lido Finance, a major decentralized finance (DeFi) protocol known for its liquid staking solutions, has announced plans to phase out its services on the Polygon network. This decision follows a governance vote within the Lido DAO community and is part of a broader strategic shift.

The announcement, made on December 16, 2024, revealed that Lido would discontinue its Polygon operations after a period of transition. The decision was driven by several factors, including limited user adoption on the Polygon network and changes in the DeFi ecosystem dynamics. Additionally, the shift towards Polygon’s zkEVM (zero-knowledge Ethereum Virtual Machine) technology has led to a decline in liquid staking activities, further influencing Lido’s move.

The end of Lido’s staking services on Polygon will take effect on December 16, 2024, when no new staking will be allowed via the Polygon interface. A six-month transition period will follow, running until June 16, 2025, during which users will be encouraged to unstake their assets. The Lido team advised users to unstake their stMATIC tokens prior to June 16, 2025, to ensure a smooth transition.

Between January 15 and January 22, 2025, Lido’s Polygon operations will be temporarily paused, and during this time, withdrawals will be unavailable. After June 16, 2025, frontend support for staking on Polygon will be completely ended, and withdrawals can only be done through explorer tools.

This move signals Lido’s intention to refocus its efforts on Ethereum, where it remains the dominant player in the liquid staking space. Lido’s total value locked (TVL) currently stands at $38.4 billion, far surpassing competitors like Rocket Pool and Jito, which have TVLs of $2.9 billion and $3.1 billion, respectively.

While this change may be disappointing for some Polygon users, it highlights the evolving nature of the DeFi landscape and the challenges that staking protocols face as blockchain networks continue to evolve.