- Lido Finance will end Polygon’s betting activities as of December 16, 2024.
- Users must uninstall MATIC before June 16, 2025 to avoid using explorer tools.
- The decision is due to low adoption, the zkEVM transition and the focus on Ethereum.
Lido Finance, the largest liquid staking protocol in the decentralized finance (DeFi) ecosystem, has done just that announced plans to cease its deployment activities on the Polygon network.
The decision, ratified by a community votes and extensive discussions within the Lido DAOmarks a strategic shift in focus towards Ethereum.
What caused the sunset?
The decision follows several challenges faced by Lido on Polygon since its founding in 2021, following a proposal from Shard Labs.
Despite initial optimism, the Lido on Polygon product struggled with limited user adoption, insufficient wagering rewards, and the resource-intensive nature of maintaining operations.
The transition of the Polygon ecosystem to zkEVM technology further reduced the demand for liquid staking solutions, reducing the impact of Lido as a fundamental DeFi component.
Moreover, board resolutions such as GOOSE And reGOOSE highlighted Lido’s strategic priority to focus on Ethereum, contributing to the reevaluation of its presence on Polygon.
Discontinuation of Lido on Polygon
The staking process will begin on December 16, 2024, when the interface for Lido on Polygon will no longer accept new staking transactions.
Users will then have a six-month transition period ending on June 16, 2025 to withdraw their staked MATIC via the Lido interface. After this period, recordings will only be accessible via blockchain explorer tools.
During the sunset process, stMATIC token holders will no longer receive staking rewards. Between January 15 and January 22, 2025, Lido’s activities on Polygon will be temporarily suspended, during which recordings will not be possible.
Users are strongly advised to unvest their assets before the June 16, 2025 deadline to ensure a smooth transition.
Lido Finance, with a total value (TVL) of $38.4 billion as of December 2024, remains a dominant player in the liquid staking market. While it is discontinuing Polygon products, the protocol’s decision underlines its commitment to adapting to market changes and prioritizing its Ethereum-based services.
