Lido is gradually discontinuing its staking services on Polygon due to various challenges, including limited user demand.
Lido, the largest liquid staking protocol by Total Value Locked (TVL), has begun the process of discontinuing its staking services on the Polygon PoS chain after a community vote passed in November.
On the Polygon PoS network, Lido allowed users to stake MATIC tokens to receive liquid staking tokens called stETH.
The platform has ceased its staking services on Polygon on Monday and announced that users can withdraw their funds until June 16, 2025. After this period, users can withdraw their funds through explorer tools, according to the announcement.
The project stated that multiple factors have led the protocol to re-evaluate and decide to discontinue its operations on Polygon.
"Lido on Polygon has faced several challenges in achieving the expected efficiency," according to the announcement. "Factors include low usage, insufficient rewards, high maintenance costs, and changes in the ecosystem."
Lido also noted that the LDO token-holding community is shifting its focus to Ethereum. Earlier this year, Lido DAO approved the "Community Staking Module" initiative, which makes solo staking on Ethereum more accessible.
Last year, Lido DAO voted to discontinue its staking services on Solana for similar reasons, as losses of $484,000 far exceeded revenues of $220,000.
Lido's withdrawal from Polygon coincides with Aave, the largest decentralized application on Polygon by TVL, receiving a proposal from a contributor group to withdraw its lending services from the Polygon PoS chain.
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The article Lido gradually discontinuing staking services for Polygon PoS first appeared on CoinMoi.
