Tokenized Locked Solana Tokens Remain Trapped on Lido Amid Smart Contract Flaw

A faulty smart contract has led to $24 million worth of tokenized staked Solana (stSOL) being locked on Lido's platform. Users are facing challenges in accessing their stSOL due to complex unstaking procedures and the discontinuation of user-friendly options. P2P Validator and the Lido DAO are actively collaborating to resolve the issue, including launching an updated maintainer bot and exploring smart contract modifications.

Tokenized Staked Solana Tokens Locked on Lido Platform Amid Smart Contract Flaw

Introduction

A significant amount of tokenized staked Solana (stSOL), valued at approximately $24 million, has been inadvertently locked on Lido's liquid-staking platform due to a faulty smart contract, causing significant inconvenience for affected users.

Understanding the Lockup Issue

Lido on Solana, a platform that allowed users to stake Solana (SOL) for a 5% yield, was discontinued in October 2023 due to financial sustainability concerns and low fees. Consequently, the user-friendly option for unstaking Solana was also discontinued, leaving users with the sole recourse of manually unstaking via Solana's command line interface (CLI). However, the CLI has proven challenging for some users, leading to a widespread issue of stSOL tokens becoming inaccessible.

Smart Contract Flaw

Investigations have revealed that the lockup issue is not solely attributable to user error but is instead caused by a flaw in the withdrawal function's smart contract. Specifically, alterations in the Rent-Exempt Split logic have been identified as potentially contributing to the issue, causing the tokens to become unresponsive to user commands.

Resolution Efforts

P2P Validator, the team formerly responsible for Lido on Solana, has made significant progress in resolving the token lockup issue. They have launched an updated maintainer bot that enables the withdrawal of stSOL tokens using the CLI. Additionally, an official guide has been provided to assist users in navigating the unstaking process.

Smart Contract Modification

Modifying the smart contract to resolve the issue presents considerable complexity and time implications. The technical team is actively engaging with the Lido DAO to explore the possibility of amending the smart contract. While specific timelines are not yet available, the team is diligently working to expedite the resolution process.

Alternative Solutions and Workarounds

While efforts are underway to address the token lockup issue directly, some users have suggested alternative solutions. These include utilizing the on-chain stability protocol Sanctum or Jupiter, which functions as a routing mechanism through Sanctum. Users can consider leveraging these platforms to swap their stSOL for SOL or other liquid staking tokens, potentially bypassing the complexities associated with the faulty smart contract on Lido's platform. However, it is crucial to exercise caution and conduct thorough research before engaging in such alternative methods.

Conclusion

The unintentional lockup of tokenized staked Solana on Lido's platform has understandably caused inconvenience among users. The faulty smart contract has hindered the unstaking process, rendering a substantial amount of stSOL tokens inaccessible. However, P2P Validator and the Lido DAO are actively working to resolve the issue. The launch of an updated maintainer bot signifies a significant step toward unlocking the trapped tokens. Alternative solutions, such as leveraging on-chain stability protocols, provide potential workarounds for users seeking immediate access to their stSOL tokens. Affected users are advised to stay informed through official channels and exercise patience as the technical team explores various avenues for resolution.

Disclaimer

The information provided in this article is for informational purposes only and should not be considered financial advice. It does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from CryptoNewsBytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from any company.