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The Project, Which Is the Largest Liquid Stake Protocol, Has Decided to Stop Stake Services for the Polygon PoS Chain! Here Are the Details
Lido, the largest liquid staking protocol by Total Value Locked (TVL), has started winding down its staking services for the Polygon PoS chain after a community-approved vote in November.
Lido is beginning to phase out its staking service for the Polygon PoS Chain.
Lido's integration with Polygon PoS network allowed users to stake Polygon's native MATIC tokens in exchange for liquid stake tokens called stMATIC. Please provide the text to be translated. However, the protocol officially halted the Polygon stake service on Monday, and users are able to withdraw their funds until June 16, 2025. According to the official announcement, after this date, withdrawals will still be possible but will require the use of explorer tools.
Lido attributed this decision to the convergence of challenges that hinder the desired impact of the service. The protocol stated that 'Lido on Polygon encountered significant challenges in achieving the intended impact.' 'Various factors contributed to this situation: limited user adoption, insufficient rewards, resource-intensive maintenance requirements, and evolving ecosystem dynamics.' Please provide a source text to be translated. The announcement also stated that token holders' focus is shifting towards Ethereum, where Lido continues to dominate as a leading liquid staking provider.
Earlier this year, Lido DAO approved a 'community staking module' initiative aimed at making Ethereum solo staking more accessible and inclusive.
This move reflects Lido's decision to shut down its Solana staking service last year. The $484,000 operational loss far exceeded the $220,000 revenue.
Lido continues to be the largest liquid staking protocol for Ethereum and maintains its position as the top decentralized finance (DeFi) protocol by TVL.
At the time of writing this article, Lido's TVL is approximately $39.3 billion, highlighting its continued dominance in the liquid staking sector.