Background and Timeline
In September, the Lido P2P validator responsible for the Solana blockchain sought financial support from the Lido DAO. Faced with the lack of funding, the validator highlighted the challenges the project would face in achieving its goals. Despite this decision, Lido continues to provide staking services for Polygon (MATIC) and Ethereum (ETH).
Sunsetting Process Details
Lido has immediately ceased accepting deposits for Solana staking. While existing stSOL holders will continue to receive rewards, the support for Solana’s frontend will be terminated by February 2024. Post this date, stakers will be required to use the Command Line Interface (CLI) to unstake their assets. Node operators have the option to voluntarily leave the platform, with the departure process starting on November 17. According to information on the protocol’s website, the unstaking process might take up to three days to complete.
Lido’s Achievements
Lido, a leading liquid staking protocol, has enabled users to earn rewards by staking assets on various protocols and blockchains. The protocol has staked over $14 billion worth of digital assets and distributed more than $700 million in rewards. On the Solana platform alone, Lido has staked over 2.3 million SOL, valued at approximately $55 million.
Conclusion
Lido’s decision to sunset its Solana staking service comes after a similar move in March, where it ended its staking program on the Polkadot (DOT) and Kusama (KSM) blockchains. The decision reflects the challenges faced by projects in the decentralized finance space and underscores the importance of sustainable funding for the long-term viability of such initiatives.
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