Lido, a prominent decentralized finance (DeFi) staking service provider, has decided to wind down its Solana (SOL) staking product as of October 16. The team behind Lido announced this move, attributing it to the project’s financial constraints in a recent blog post.
The decision was made to discontinue Lido’s involvement with Solana after extensive discussions within the Decentralized Autonomous Organization (DAO) and a community vote. The overwhelming consensus among the community members favored ending Lido’s support for Solana.
In September, troubles emerged for Lido’s Solana staking service when the Lido P2P validator, responsible for the Solana blockchain, contacted the Lido DAO. Facing financial challenges, the validator sought assistance or possible termination of the project. Unfortunately, inadequate funding hindered progress toward achieving project objectives.
Lido continues to offer staking services for various blockchains like Polygon (MATIC) and Ethereum (ETH) despite encountering a setback with SOL. Although the team decided to stop accepting deposits for staking SOL, those who currently hold stSOL will still receive rewards. However, it’s important to note that support for the Solana front end will be discontinued by February 2024.
Countdown Begins: Lido’s Timeline for Solana Exit
From this date onwards, individuals who hold assets must utilize the Command Line Interface (CLI) for unstaking. Moreover, it is strongly recommended that node operators voluntarily withdraw from the platform before November 17. Please note that completing the unstaking process may take up to three days, as specified on the protocol’s official website.
Lido has emerged as a major force in the liquid staking sector. It empowers users to earn rewards by staking assets on different protocols and blockchains. As per their data, Lido has successfully staked over $14 billion worth of digital assets and generously distributed more than $700 million as rewards.
On the Solana platform, the protocol has staked more than 2.3 million SOLs, amounting to approximately $55 million. Lido’s decision to discontinue its Solana staking service is reminiscent of its previous move in March. During that time, the project ended its staking program on the Polkadot (DOT) and Kusama (KSM) blockchains.
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