Lido Phases Out Staking Services on Polygon PoS

Lido, the leading liquid staking protocol by total value locked, has begun the phase-out of its staking services for the Polygon PoS chain following a community-approved vote in November.

Its implementation on the Polygon PoS network allowed users to stake Polygon's MATIC tokens for liquid staking tokens called static.

The protocol discontinued the Polygon staking service on Monday and notified users that they could withdraw funds until June 16, 2025. After this date, withdrawals will be available through explorer tools, according to the announcement.

The announcement stated that several factors led Lido to reevaluate and eventually initiate the discontinuation of Lido on Polygon.

> “Lido on Polygon has faced significant challenges in achieving its intended impact,” the announcement said. “Several factors have contributed to this situation: limited user adoption, insufficient rewards, resource-intensive maintenance requirements, and evolving ecosystem dynamics.”

Additionally, Lido noted a shift in LDO token holders’ focus towards Ethereum. Earlier this year, Lido DAO approved the launch of its “community staking module” aimed at making Ethereum solo staking more inclusive.

Lido DAO had previously voted to cease its Solana staking services for similar reasons, as losses of $484,000 exceeded revenue of $220,000.

Currently, Lido remains the largest liquid staking protocol for ETH and ranks as the top DeFi protocol by total value locked, boasting around $39.3 billion in TVL at the time of writing.

The shutdown of Lido on Polygon coincides with Aave, the largest dApp on Polygon by TVL, receiving a proposal from a contributor group to withdraw its lending services from Polygon’s PoS chain. This proposal emerges in response to a Polygon initiative aimed at utilizing bridged stablecoins for yield generation.