KEY TAKEAWAYS
- Lido on Polygon will be discontinued following a community vote and discussions on the DAO forum.
- The protocol faced challenges such as limited user adoption and evolving DeFi dynamics, leading to its sunsetting.
- LDO token holders are refocusing on Ethereum, influencing the decision to end Lido on Polygon.
- Users with stMATIC tokens should follow unstaking instructions and stay updated via Lido’s official channels.
Over the coming months, the Lido on Polygon protocol will be effectively discontinued. This decision follows extensive discussions on the DAO forum and a subsequent community vote. LDO token holders requested the sunsetting of the protocol, and the process is set to begin shortly.
The Lido on Polygon initiative began with a proposal submitted by Shard Labs in 2021. Despite initial high expectations, the protocol faced significant challenges in achieving its intended impact. Several factors contributed to this situation, including limited user adoption, insufficient rewards, resource-intensive maintenance requirements, and evolving ecosystem dynamics.
Challenges and Strategic Refocus
A key challenge has been the shifting landscape of decentralized finance (DeFi) activity, particularly with an increased focus on zkEVM solutions. This transition has led to reduced demand for liquid staking solutions on Polygon POS, affecting Lido on Polygon’s potential as a foundational DeFi building block. Additionally, alternative liquid staking solutions have emerged within an ecosystem that proved smaller than initially anticipated.
These developments, combined with the LDO token holders’ strategic refocus on Ethereum, as outlined in recent GOOSE and reGOOSE governance decisions, prompted a thorough reevaluation of Lido protocol’s presence on Polygon. After extensive evaluation and a governance vote by LDO token holders, the decision was made to begin the sunsetting process for Lido on Polygon.
For more insights into the decision-making process and discussion, please refer to the forum post: here.
Implications for Users
Users holding stMATIC tokens are advised to follow unstaking instructions provided by the protocol. Key dates and further updates regarding the sunsetting process will be communicated through Lido’s official channels, including Discord, Telegram, and Twitter.
Explore More News:
Disclaimer: The views expressed in this article are those of the authors and do not necessarily reflect the official policy of CoinsHolder. Content, including that generated with the help of AI, is for informational purposes only and is not intended as legal, financial, or professional advice. Readers should do their research before taking any actions related to the company and carry full responsibility for their decisions.