1. Lido halted Solana staking in October 2023 due to financial and fee issues, leading to approximately $25 million SOL trapped in its smart contracts.
2. Technical complexities in the unstaking process are causing difficulties for users trying to retrieve their SOL holdings from Lido.
3. Users express frustration over Lido's lack of communication regarding the situation, exacerbating confusion and discontent.
4. Although the withdrawal function issue has been pinpointed, resolving it through Lido DAO may prove challenging and time-consuming.
5. With $25 million SOL locked in Lido's smart contracts, the community faces obstacles in reclaiming their funds amidst technical hurdles and communication shortcomings.
Amidst the cessation of Solana staking by Lido due to financial and fee-related challenges, millions of dollars worth of staked Solana tokens remain locked in Lido's smart contracts, complicating the situation for users seeking to reclaim their assets. The discontinuation of Solana staking on Lido, announced in October 2023, left users with limited options, primarily resorting to Solana's command line interface (CLI) for withdrawals after February of the following year.
However, the complexity of utilizing the CLI has proven daunting for many users, evidenced by the flood of inquiries and complaints inundating Lido's Discord channel. As reported by SolScan, approximately $25,179,140 million worth of staked Solana (stSOL) remains inaccessible to around 31,587 holders, exacerbating frustration among the community.
Moreover, communication from Lido regarding the situation has been criticized as lacking, leaving users in the dark about potential resolutions and exacerbating their discontent. Recent insights from Pavel Pavlov, a product manager from P2P Validator, shed light on a potential technical issue with the smart contract's withdrawal function, specifically related to changes in the Rent-Exempt Split logic. Despite identifying the issue, P2P Validator acknowledges its limited control over the situation, suggesting the involvement of Lido DAO for a potential solution.
However, rectifying the smart contract issue poses a daunting challenge, requiring a complex and time-consuming process with no guarantee of a straightforward resolution. Meanwhile, amidst the turmoil surrounding Solana staking on Lido, the broader Solana market exhibits signs of recovery and resilience. Despite recent downward pressure on Solana's price, evidenced by a decline from $210 to $177, bullish momentum persists, as indicated by recent price action.
Analysts suggest monitoring key support levels, particularly $177, while anticipating a potential retest of the $203 resistance level. However, given the inherently volatile nature of cryptocurrency markets, investors are advised to conduct thorough research and exercise caution when making financial decisions.