Lido, a leading liquid staking protocol, announced it will end staking services on the Polygon network.
This decision follows a governance vote by Lido DAO holders and long discussions within the community. This shutdown will happen over the next few months, marking the end of Lido’s Polygon operations, which have been running since 2021.
In a blog post, Lido highlighted challenges like limited user adoption, low staking rewards, and high maintenance costs. Emerging zkEVM solutions and increased competition from platforms like EigenLayer further reduced demand for Lido’s services on Polygon.
Governance priorities also played a role. Initiatives like GOOSE and reGOOSE shifted focus to Ethereum, prompting Lido to reevaluate its multi-network strategy.
For stMATIC token holders, key dates include:
- December 16, 2024: The staking services will be shut down, and new deposits will no longer be accepted.
- January 15-22, 2025: Operations will temporarily pause, and withdrawals will be unavailable.
- June 16, 2025: Final date for withdrawals via the Lido interface. After this, users must use blockchain explorer tools.
Lido advised stMATIC holders to start withdrawals early to avoid complications. This might be a problem for less experienced users if there is no front-end support post-June 2025.
Polygon’s POL token initially fell following the announcement but has been recovering in step with wider market conditions.
This move underlines the shifting priorities within DeFi as protocols like Lido firm up their strategies in a changing market dynamic.
