Lido Halts Staking on Polygon to Prioritize Ethereum Network

The decentralized finance (DeFi) landscape is no stranger to evolution, and the latest shakeup comes from Lido Finance, the largest liquid staking protocol with over $39 billion in total value locked (TVL).

Lido Price Trading volume in 24h Last 7d price movement has announced it will sunset its staking services on the Polygon (POL) PoS network, marking a significant shift for both platforms.

With user withdrawals set to close by June 16, 2025, this move reflects broader trends and challenges in the multichain DeFi ecosystem.

Lido Finance Decides to Leave Polygon Behind

Notably, Polygon Price Trading volume in 24h Last 7d price movement currently ranks as the fifth-largest network by TVL on Lido, trailing Ethereum, BNB Chain, Arbitrum, and Base. Yet even with recent growth, particularly in wstETH holdings on Polygon, the protocol struggled to justify the costs of sustaining operations on the network.

“Lido on Polygon has faced significant challenges in achieving the expected impact,” explained the team. Contributing factors included insufficient rewards, high maintenance demands, and evolving market dynamics that made continuation unviable.

If users fail to withdraw by June 16, 2025, funds can only be accessed using explorer tools like direct contract interactions. Withdrawals are subject to an unlock time of approximately nine days, so early action is encouraged to avoid complications.

The closure of services on Polygon signals a strategic shift for Lido, which is doubling down on Ethereum and its growing ecosystem of Layer 2 and rollup solutions. Ethereum remains Lido’s most dominant platform, providing the lion’s share of its TVL.

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Broader Implications for Polygon and DeFi

It’s a rocky stretch for Polygon. Lido’s Solana shutdown last year was an ominous sign, and now Aave might cut ties with Polygon altogether.

For Polygon, Lido’s departure highlights the difficulty of retaining high-profile DeFi protocols in an increasingly competitive market dominated by Ethereum-based solutions.

Waking up to Polygon/Aave drama is spicy pic.twitter.com/6uLXFyVQdB

— Billyjitsu ⟁ (@billyjitsu_) December 16, 2024

If you’re involved with Lido, immediate action is essential for POL holders. The ability to unstake via the simple dApp interface remains open until June 2025. The Lido team urges all users to act early to avoid unnecessary hurdles.

Lido’s exit from Polygon stings, but it’s a calculated move. The protocol is trimming fat, doubling down on profitability, and aligning itself with Ethereum’s Layer 2 surge. With Ethereum tightening its grip on DeFi, Lido’s bet on scalability and long-term growth looks like a play for dominance. For Polygon users, it’s time to adapt while the rest of DeFi watches.

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