Liquid staking protocol Lido Finance may cease operations on the Polygon blockchain. Recent technical problems, an uncertain roadmap and the lack of other LSD providers are cited as justification for the proposal.
The Lido community released a proposal to terminate the Lido project on Polygon, citing reasons including recent technical issues; uncertainty Polygon roadmap; no other staking providers on Polygon; it is recommended to focus on a native ETH liquid staking provider.…
— Wu Blockchain (@WuBlockchain) October 19, 2023
Other reasons include the low profitability of staking. Given the current TVL 151 million MATIC, a remuneration level of 4.17% and a 5% DAO commission, the project will earn $166,863 in annualized terms.
The author of the proposal mentioned the suspension of withdrawals from the protocol for 25 days after a technical update to the blockchain that led to the error. He noted that the team had to take this reputational risk into account and expressed satisfaction that FUD did not arise then.
The developer noted that the expected multi-year transition to the Polygon 2.0 architecture poses a certain challenge. The project will have to deal with significant changes and incur audit costs, which may cause the problems mentioned above.
The author of the initiative proposed to focus exclusively on working on Ethereum and not take on the risks of other blockchains with low TVL values.
Recently, Lido Finance announced the end of support for Solana.
Source: Cryptocurrency
I am an experienced journalist and writer with a career in the news industry. My focus is on covering Top News stories for World Stock Market, where I provide comprehensive analysis and commentary on markets around the world. I have expertise in writing both long-form articles and shorter pieces that deliver timely, relevant updates to readers.
