Lido on Polygon sunset process has begun following the extensive discussions in the Lido DAO forum and a governance vote by LDO token holders. A strategic refocus on Ethereum and lack of scalability on Polygon POS has led to the discontinuation of staking services on the respective network.
Lido on Polygon launched in 2021 as a proposal by Shard Labs, with the goal of providing a liquid staking solution for the Polygon PoS chain. Despite early optimism, several challenges have limited its success. For more details, you can review the full forum discussion here.
See below for an outline of the key reasons behind this decision, important dates, and the necessary actions for stMATIC holders.
Implications for stMATIC Holders
1. Staking Discontinuation
December 16, 2024: Staking on Lido for Polygon will be discontinued. After this date, no new MATIC/POL deposits will be accepted via the Lido on Polygon user interface (UI).
2. Withdrawal Process
Until June 16, 2025: Users can unstake their stMATIC and withdraw funds through the Lido on Polygon frontend during this six-month transition period.
January 6-10, 2025: Protocol will temporarily pause and then resume operations. No withdrawals can be processed during this period.
After June 16, 2025: The Lido on Polygon frontend will no longer support withdrawals. However, users will still be able to unstake their stMATIC through explorer tools and other blockchain interaction methods. Unstaking instructions can be found here.
3. Discontinued Rewards
stMATIC holders will not continue to get staking rewards until their tokens are withdrawn.
Key Dates
December 16, 2024: Staking on Lido for Polygon will be discontinued. No new transfers will be accepted.
December 16, 2024 – June 16, 2025: Transition period: Withdrawals can be processed via the Lido on Polygon UI.
January 15-22, 2025: Protocol will temporarily pause and then resume operations. No withdrawals can be processed during this period.
June 16, 2025: Frontend support concludes. Withdrawals will only be possible via explorer tools.
Next Steps for stMATIC Holders
Unstake Early: Plan to withdraw your stMATIC before June 16, 2025, to ensure a smooth unstaking experience using the Lido on Polygon UI.
Explore Withdrawal Alternatives: After June 16, 2025, familiarize yourself with explorer tools to access your staked funds.