Lido to Sunset Polygon Support in Coming Months

Lido Finance, the largest liquid staking protocol in the decentralized finance (DeFi) market, has announced a timeline for discontinuing its products on Polygon. The decision follows a DAO forum discussion and a community vote, led by Lido DAO token holders.

Reasons Behind the Decision

Several factors have influenced the decision to end Lido’s support on Polygon. These include limited user adoption and shifting dynamics in the DeFi ecosystem. Additionally, Polygon’s transition to zkEVM has contributed to a decline in liquid staking activity. The Lido community’s governance resolutions, focusing on Ethereum, have also played a part in the sunsetting of Polygon services.

Discontinuation Timeline

The discontinuation of staking on Polygon begins on December 16, 2024, after which no new staking will be allowed via the Polygon interface. A six-month transition period, running from December 16, 2024, to June 16, 2025, will allow users to unstake their Polygon tokens.

“It is highly advised to unstake stMATIC prior to June 16, 2025 to ensure a smooth unstaking experience using the Lido on Polygon UI.”

Key Dates to Note

  • December 16, 2024: Discontinuation of new staking on Polygon
  • January 15-22, 2025: Temporary pause of Lido on Polygon operations (withdrawals unavailable)
  • June 16, 2025: End of frontend support for staking on Polygon (withdrawals only possible through explorer tools)

Lido’s Market Position

As the largest liquid staking protocol in the DeFi market, Lido currently has a total value locked (TVL) of $38.4 billion, dwarfing that of Rocket Pool and Jito, which stand at $2.9 billion and $3.1 billion respectively.

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