Lido sunsets staking on Polygon network

Staking protocol Lido has announced a timeline for the deprecation of its products on Polygon in the coming months.

The Lido Finance team announced on December 16 that it planned to cease all operations on Polygon following a DAO forum discussion and community vote approving this move. According to the team, the decision to end Lido’s support for Polygon was made by Lido DAO (LDO) token holders, and the initial offer was submitted by Shard Labs in 2021.

Lido cited several challenges influencing the decision, including limited user adoption and changing dynamics in the decentralized finance (DeFi) ecosystem. Additionally, Polygon’s transition to zkEVM contributed to a decline in liquid staking activity.

Management decisions by the Lido community aimed at refocusing on Ethereum (ETH) are also one of the reasons for the demise of Polygon services.

The cessation of staking on Polygon will begin on December 16, 2024, and no new staking will be allowed through the Polygon interface after this date. A six-month transition period from December 16, 2024 to June 16, 2025 will allow users to remove their Polygons (MATIC).

“To ensure a seamless staking experience using Lido in the Polygon UI, it is highly recommended that stMATIC be removed before June 16, 2025.”

Lido Finans team is at X

Between January 15 and January 22, 2025, Lido’s Polygon operations will be temporarily paused and withdrawals will not be available during this period. Front-end support for staking on the Polygon protocol will end on June 16, 2025. After this date, withdrawals will only be possible via explorer tools.

Lido is the largest liquid staking protocol in the DeFi market, and DeFiLlama data shows that it currently has a total value locked of $38.4 billion. Its TVL dwarfs that of Rocket Pool and Jito, which are $2.9 billion and $3.1 billion respectively.