Lido, a big name in the world of staking, has decided to stop its work on Polygon. After lots of talks and votes by the people who hold LDO tokens, they agreed to end Lido’s presence on Polygon.
Why is Lido Leaving Polygon?
Back in 2021, Lido (LDO) came to Polygon (POL) thanks to Shard Labs. But things didn’t go as planned. Not many people used it, and it was hard to keep up with the costs and rewards. The world of DeFi (Decentralized Finance) is always changing, and now everyone’s looking at something called zkEVM, which means less interest in Polygon’s staking.
Lido is now focusing more on Ethereum because that’s where they think they can do better. This decision is part of their plan called GOOSE and reGOOSE.
What Does This Mean for You?
If you have stMATIC, here’s what you need to know:
- Rewards: No more rewards from now on.
- Temporary Pause: From January 15 to January 22, 2025, you won’t be able to take your tokens out.
- Withdrawals: You have until June 16, 2025, to get your MATIC tokens back using Lido’s front-end. After that, you’ll need special tools to do it.
Starting December 16, 2024, you can’t add more tokens to stake. But you have six months to take your tokens out if you want.
Lido’s History of Changes
This isn’t Lido’s first big move. Last year, they also decided to leave Solana (SOL) because it wasn’t making enough money and the fees were too low.
What’s Happening with Polygon?
Lido isn’t the only one moving away from Polygon. Aave (AAVE), another big name in lending, might also leave because of concerns about how safe it is to move assets between different blockchains. Plus, another company, Swell, has decided to switch from using Polygon’s tech to something called Optimism Superchain.
What’s Next?
For anyone using Lido on Polygon, it’s time to think about where to stake your tokens next. This change might make some people worried, but it’s all part of how the crypto world keeps evolving to find the best ways to work.
Keep an eye on your stMATIC and plan your next move before the deadlines hit. This is never financial advice, please DYOR. You can also DYOR on blog.millionero.com. When you’re good, you can trade spot and perp on millionero.com.