An error in the code of the Lido Finance liquid staking protocol led to users losing the ability to withdraw funds. The Lido platform on Solana (SOL) closed back in October. However, it still contains about $24 million, which users cannot access. Meanhilw, BlockDAG V2 whitepaper unveils a game-changer for decentralized altcoins.
Why did Lido stop supporting the protocol on Solana?
Lido is the largest player in the decentralized finance (DeFi) sector. The protocol lowers the barrier to entry into the Ethereum (ETH ) staking market. Users deposit their ETH tokens in it and in exchange receive a reward in the form of stETH.
Overall, the total value locked (TVL) in Lido is more than $31 billion, according to DefiLlama. However, the service of the site on Solana lagged far behind competitors like Marinade and Jito, so they decided to close it.
Last October, the Lido team announced that it would stop supporting the service on the SOL network. Users could withdraw their funds until February, when the developers finally removed the stSOL and SOL exchange interface. However, despite this, 112,923 29 SOL remained in the protocol, which is valued at $124 million. According to Solscan, these tokens belonged to 31,585 users.
Lido: An error occurred!
What complicates the situation is not the number of tokens stuck in the Lido protocol on Solana, but the fact that an error has appeared in the smart contracts of the protocol. It does not allow stakers to withdraw their investments – they had to directly interact with the code, but many do not have the necessary knowledge for this. And indeed, the affected stakers began to complain en masse back in mid-March. According to them, the entire withdrawal process is too complicated for “non-professionals.” However, some encountered difficulties following all the instructions provided by the Lido developers.
“I can’t unblock stSOL because neither of the two solutions presented on the Lido website work,” wrote a user under the nickname ericxtang in the Discord channel.
the solana channel of the lido discord is a mess
stSOL holders trying to unstake completely lost and abandoned, CLI tooling broken.
there is over $24m of SOL stuck in stSOL.
i know stSOL is depreciated, but i don’t think this the right way to treat your users @LidoFinance
— j | sanctum (@eggpanned) March 29, 2024
The product manager for P2P Validator, the team responsible for Lido on Solana, confirmed that the withdrawal difficulties were due to a bug in the smart contract. According to him, his project is now working to resolve the situation together with LidoDAO.
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