As a seasoned analyst with years of experience navigating the dynamic landscape of DeFi, I find Lido’s decision to sunset its products on Polygon intriguing. While it’s always challenging to see a prominent player like Lido retreat from a platform, the move seems strategic given the current market dynamics and user adoption trends.
In the upcoming months, Lido’s staking protocol has revealed a schedule for phasing out its offerings on the Polygon network.
On December 16th, it was announced by the Lido Finance team that they intend to cease all operations on the Polygon network, following a community vote and a discussion within the DAO forum. The decision to stop supporting Lido on Polygon was reportedly made by holders of the LDO token, with the initial suggestion coming from Shard Labs in 2021.
Lido cited several challenges influencing the decision, including limited user adoption and shifting dynamics in the decentralized finance (DeFi) ecosystem. Additionally, Polygon’s transition to zkEVM has contributed to a decline in liquid staking activity.
The decision by the Lido community to prioritize governance towards Ethereum (ETH) has played a role in the phasing out of their Polygon services as well.
Starting on December 16, 2024, the option to stake on Polygon will no longer be available through its interface. However, a six-month period, from December 16, 2024, to June 16, 2025, has been set aside for users to withdraw their staked Polygon (MATIC) during this transition phase.
It’s strongly recommended that you withdraw your staked matic tokens before June 16, 2025. This will help guarantee a hassle-free withdrawal process when using the Lido interface on the Polygon network.
Lido Finance team on X
From January 15th to January 22nd, 2025, Lido on Polygon’s activities will experience a temporary halt, during which no withdrawals can be made. As of June 16th, 2025, frontend support for staking on the Polygon protocol will conclude. After this date, it will only be possible to make withdrawals using explorer tools.
Lido holds the title as the most prominent liquid staking platform in the Decentralized Finance (DeFi) sector, according to DeFiLlama’s data. At present, its Total Value Locked (TVL) amounts to a staggering $38.4 billion. In comparison, the TVL of Rocket Pool and Jito, which are other notable players in this space, are relatively smaller at $2.9 billion and $3.1 billion respectively.
Read More
- 10 Most Anticipated Anime of 2025
- USD MXN PREDICTION
- Brent Oil Forecast
- Pi Network (PI) Price Prediction for 2025
- Silver Rate Forecast
- USD JPY PREDICTION
- USD CNY PREDICTION
- How to Watch 2025 NBA Draft Live Online Without Cable
- Gold Rate Forecast
- Castle Duels tier list – Best Legendary and Epic cards
2024-12-16 20:28