Lido Finance to Sunset Staking Operations on Polygon Network, Marking a Strategic Shift in Focus toward Ethereum

The decision, finalized through a community vote and extensive discussions within the Lido DAO, marks a strategic shift in focus toward Ethereum.

Decentralized finance (DeFi) protocol Lido Finance is sunsetting its staking operations on the Polygon network.

The decision, finalized through a community vote and discussions within the Lido DAO, marks a strategic shift in focus toward Ethereum. Lido on Polygon was launched in 2021 following a proposal by Shard Labs.

Despite initial optimism, the product encountered several challenges, including limited user adoption, insufficient staking rewards, and the resource-intensive nature of maintaining operations.

The transition of the Polygon ecosystem toward zkEVM technology also reduced the demand for liquid staking solutions, diminishing Lido’s impact as a foundational DeFi component.

Additionally, governance resolutions such as GOOSE and reGOOSE highlighted Lido’s strategic priority to focus on Ethereum, leading to the reevaluation of its presence on Polygon.

Discontinuing Lido on Polygon

The process of discontinuation begins 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 through Lido’s interface. After this period, withdrawals will only be accessible via blockchain explorer tools.

Throughout the sunsetting process, stMATIC token holders will no longer receive staking rewards. Between January 15 and January 22, 2025, Lido’s operations on Polygon will temporarily pause, during which withdrawals will not be possible.

Users are strongly advised to unstake their assets before the June 16, 2025, deadline to ensure a smooth transition.

Lido Finance, with a total value locked (TVL) of $38.4 billion as of December 2024, is a dominant player in the liquid staking market.

While discontinuing its Polygon products, the protocol’s decision underscores its commitment to adapting to market changes and prioritizing its Ethereum-based services.