Lido Protocol Ends Staking Support for Polygon
Date: 2024-12-18 Author: Oliver Abernathy Categories: BLOCKCHAIN
`The Lido protocol has announced that it is shutting down staking services for the Polygon blockchain. As a final step, the team plans to temporarily resume operations from January 15 to January 22, 2025, to allow users to manage their assets. Withdrawals through the standard Lido on Polygon interface will be available until June 16, 2025.
Lido representatives explained that the project faced a number of difficulties that hindered its development. Among the main problems are low user adoption, low profitability, and high maintenance costs. In addition, constant changes in the Polygon ecosystem have created additional difficulties. The team also noted that the ecosystem was significantly less developed than expected, and alternative liquid staking solutions that appeared on the network further limited interest in the product.
The situation has been exacerbated by changes in the decentralized finance (DeFi) market. Polygon’s introduction of a new scalable solution zkEVM has led to a decline in interest in existing liquid staking platforms on the Polygon PoS network.
Previously, Polygon Labs CEO Marc Boiron shared his views on improving interoperability between different blockchains, including Ethereum, Solana, BSC, and Base, as well as increasing their scalability. These steps, he said, could strengthen Polygon’s position in the blockchain industry despite Lido’s departure.
Lido is thus ending its participation in the Polygon ecosystem, focusing on other areas where growth opportunities and product popularity remain more significant.
