Lido’s Polygon staking service will fully sunset by June 16, requiring users to unstake stMATIC tokens before the deadline. The decision follows declining demand post-Merge and regulatory scrutiny of liquid staking providers. Users face a 14-day unbonding period for withdrawals.
The team recommends migrating to alternative liquid staking protocols like Ankr or Stader. Over 85% of stMATIC has been unstaked since the March 2025 announcement. Remaining funds will be automatically converted to MATIC and returned post-deadline.
This wind-down reflects broader shifts in staking economics after Ethereum’s transition to proof-of-stake. Analysts predict consolidation among staking providers as regulatory clarity emerges. The process underscores the importance of monitoring protocol sunset timelines for DeFi participants.