stake protocol Lido announced its withdrawal from Polygon! Please withdraw MATIC as soon as possible, stake service on Polygon has been stopped

on-chain stake protocol Lido Finance announced on 12/16 that it will gradually withdraw from Polygon in the coming months. The reasons include low usage, high operational costs, and a shift in market trends, continuing to support Polygon has proven to be of little benefit. Lido stated that it will cease its stake service on Polygon starting from 12/16 this year, but users can still withdraw the $MATIC Tokens staked on Polygon through Lido until 6/16 next year.

Lido community voted to exit Polygon with 99% support

On December 16, the Lido team announced that this decision was made by the Lido DAO token holders through a vote, with 99% of the token holders supporting the withdrawal from Polygon. At that time, two options were proposed, namely 'complete withdrawal from Polygon' and 'reevaluation' of the economic benefits of Lido on Polygon to see if there were other ways to improve. However, almost all token holders decided to withdraw from Polygon.

(POL coin price is dismal, Polygon DAO proposes to deploy a $1 billion stablecoin play yield farm)

Three major reasons behind the withdrawal from Polygon

The Lido team said that Polygon is currently facing three major issues:

High maintenance cost: Maintaining the operation of the system requires a large amount of resources and manpower, which is currently difficult to afford.

Insufficient Return: Lido's stake return rate on Polygon has not achieved the expected benefits.

Market trend changes: With DeFi gradually shifting towards zkEVM, the demand for Polygon has significantly decreased.

The Shard Labs team, which brought Lido to Polygon, also stated on 12/16 that due to the changing market trends, Polygon's proof-of-stake (PoS) and liquidity stake functionality have become less important.

Lido Service Suspension Schedule

December 16, 2024: Stop the Lido stake service on Polygon, do not accept new $MATIC stake, and stop distributing all stake rewards.

January 15th to January 22nd, 2025: Temporary closure of $MATIC withdrawal service on Lido official interface.

June 16, 2025: Users must withdraw the already staked $MATIC through the Lido official interface before 6/16. After that, the operation interface will be completely closed, and users will only be able to withdraw Tokens through other blockchain browsers.

Lido focuses on Ethereum

As of 12/16, data from DeFiLlama shows that Lido currently has a total on-chain staking amount of up to 39.4 billion US dollars, firmly occupying the position of the world's largest liquidity stake protocol leader.

Lido, with a locked volume of 39.4 billion, firmly occupies the throne of the on-chain stake protocol.

However, Lido's performance on Polygon is relatively weak. According to Dune's data, the total stake of Lido on Polygon is only about $45 million, accounting for a small part of the total lock-up amount of $1.2 billion on Polygon. This reflects the low user adoption and limited returns of Lido on Polygon, making it difficult to support long-term development. Perhaps this is why Lido decided to withdraw from Polygon and refocus its resources on the potentially more promising Ethereum.

It is worth noting that this is not Lido's first exit from other blockchains. In 2023, Lido also announced the cessation of on-chain services on Solana, citing poor economic performance and difficulty in maintaining financial stability as reasons for the exit. As for whether Polygon can attract the participation of large protocols in the future, further observation is needed.

(Lidoprotocol quits Solana!) The development team proposed a fundraising plan, and frankly said that it was impossible to make ends meet)

This article stakeprotocol Lido announced its withdrawal from Polygon! Please withdraw MATIC as soon as possible. Stake services on Polygon have been stopped. First appeared in ChainNews ABMedia.