Lido, a major liquid staking protocol, has announced the discontinuation of its services on the Polygon network. The decision, made after community discussions and a governance vote by Lido DAO token holders, will see the shutdown process begin in the coming months. Despite high expectations, Lido on Polygon struggled with limited user adoption, low staking rewards, and maintenance challenges. The rise of zkEVM-based solutions and competition from other liquid staking services further impacted Lido's position. The DAO's strategic focus on Ethereum also influenced the decision to sunset Lido on Polygon. This move highlights the difficulties protocols face in expanding beyond their primary network. While the shutdown may create a gap in Polygon's staking ecosystem, it reflects Lido's commitment to its core focus on Ethereum. Users holding stMATIC, Lido's liquid staking token for Polygon, are advised to withdraw their funds early to avoid disruptions. Read more AI-generated news on: https://app.chaingpt.org/news

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