Lido Announces Discontinuation of Polygon Staking Services

Lido, a leading liquid staking protocol, has announced the planned discontinuation of its Polygon staking services, with users given until June 16, 2025, to withdraw their funds. The decision follows extensive community discussions and a governance vote by LDO token holders.

The protocol’s journey on Polygon began with high expectations in 2021 through a proposal from Shard Labs. However, several challenges have led to this strategic withdrawal, including limited user adoption, insufficient reward generation, and resource-intensive maintenance requirements.

The Lido on Polygon sunset process has begun.https://t.co/icgidJsbqF

See below for an overview of upcoming timelines and requirements 📆📜

— Lido (@LidoFinance) December 16, 2024

The shifting DeFi landscape, particularly the growing focus on zkEVM solutions, has reduced demand for liquid staking solutions on Polygon POS.

The discontinuation process will follow a carefully structured timeline. Starting December 16, 2024, Lido will stop accepting new stakes through its user interface. A six-month transition period will follow, during which users can withdraw their funds through the Lido on Polygon UI.

Users should note several key operational changes during this period:

Network rewards for stMATIC holders will cease during the sunsetting process
A temporary protocol pause is scheduled for January 15-22, 2025, during which withdrawals will be suspended
After June 16, 2025, withdrawals will only be possible through explorer tools.

This decision aligns with Lido’s recent governance decisions, including GOOSE and reGOOSE initiatives, which emphasize a strategic refocus on Ethereum. The protocol’s experience on Polygon revealed challenges in establishing itself as a foundational DeFi building block within an ecosystem that proved smaller than initially anticipated.

Users are encouraged to review the withdrawal instructions provided by Lido and plan their exits accordingly before the June 2025 deadline. The protocol has committed to maintaining withdrawal functionality through explorer tools even after the frontend support concludes, ensuring users retain access to their funds.