Lido Finance has formally decided to stop providing staking services on the Polygon network. A blog post dated December 16 claims that this action results from thorough debates inside the distributed autonomous organisation (DAO) and a community vote whereby most Lido token holders approved the termination of activities on Polygon.
StMATIC holders will stop instantly getting network incentives as part of this change. Until June 16, 2025 users can unstake their MATIC through the Lido on Polygon frontend. Beyond that date, withdrawals will still be allowed but will call for the use of Explorer tools.
Originally put forth by Shard Labs in 2021, Lido’s integration with Polygon started with great expectations. The project did, however, have major difficulties like low user acceptance, inadequate rewards, resource-heavy upkeep, and changing ecological dynamics.
The changing character of distributed finance (DeFi) activities is a major determinant of this choice. The emergence of zkEVM solutions has changed the demand scene, therefore lowering Polygon’s requirement for liquid staking solutions. Lido’s position as a basic DeFi component on the network has changed with this change.
These difficulties and recent governance choices by Lido token holders to deliberately target Ethereum have resulted in the decision to stop staking activities on Polygon. This action fits Lido’s more general plan to focus its resources and efforts on the Ethereum ecosystem.
