Lido, the largest liquid staking protocol by total value locked (TVL), has begun terminating staking services for its Polygon PoS chain following a community-approved vote in November.
Lido Begins to Phase Out Staking Service for Polygon PoS Chain
Lido’s integration with the Polygon PoS network allowed users to stake Polygon’s native MATIC tokens in exchange for liquid staking tokens called stMATIC.
However, the protocol officially shut down the Polygon staking service on Monday, with users able to withdraw their funds until June 16, 2025. According to the official announcement, withdrawals will still be possible after this date but will require the use of explorer tools.
Lido attributed this decision to a combination of challenges that prevented the service from achieving its desired impact. “Lido on Polygon encountered significant challenges in achieving its intended impact,” the memorandum said. “A variety of factors contributed to this situation: limited user adoption, insufficient rewards, resource-intensive maintenance requirements, and evolving ecosystem dynamics.”
The announcement also noted that the focus of token holders is shifting towards Ethereum, where Lido continues to dominate as the leading liquid staking provider.
Earlier this year, Lido DAO approved a “community staking module” initiative that aims to make Ethereum solo staking more accessible and inclusive.
The move mirrors Lido’s decision to shut down its Solana staking service last year, when operating losses of $484,000 far exceeded revenues of $220,000.
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, Lido’s TVL stands at approximately $39.3 billion, underscoring its continued dominance in the liquid staking sector.
*This is not investment advice.
