Lido sunsets staking on Polygon network

Staking protocol Lido has announced a timeline for the sunsetting of its products on Polygon in the coming months.

The Lido Finance team announced on December 16 that it plans to discontinue all operations on Polygon following a DAO forum discussion and a community vote approving the move. According to the team, the decision to end Lido’s support on Polygon was made by Lido DAO (LDO) token holders, with the initial proposal forwarded by Shard Labs in 2021.

Lido cited several challenges influencing the decision, including limited user adoption and shifting dynamics in the decentralized finance (DeFi) ecosystem. Additionally, Polygon’s transition to zkEVM has contributed to a decline in liquid staking activity.

The Lido community’s governance resolutions looking to refocus on Ethereum (ETH) is also part of the reason for the sunsetting of the Polygon services.

The discontinuation of staking on Polygon begins on December 16, 2024, after which no new staking will be allowed via the Polygon interface. A six-month transition period, running from December 16, 2024, to June 16, 2025, will allow users to unstake their Polygon (MATIC).

“It is highly advised to unstake stMATIC prior to June 16, 2025 to ensure a smooth unstaking experience using the Lido on Polygon UI.”

Lido Finance team on X

Between January 15 and January 22, 2025, Lido on Polygon operations will temporarily pause, during which withdrawals will be unavailable. Frontend support for staking on the Polygon protocol will end on June 16, 2025. After this date, withdrawals will only be possible through explorer tools.

Lido is the largest liquid staking protocol in the DeFi market, with DeFiLlama data showing it currently has a total value locked of $38.4 billion. Its TVL dwarfs that of Rocket Pool and Jito, which stood at $2.9 billion and $3.1 billion respectively.