#Lido Finance #Protocol Considers Ending Support for #Polygon

The Lido Finance protocol is contemplating the possibility of concluding its operations on the Polygon network. This decision is substantiated by several factors, including recent technical issues, uncertainty in development plans, and the absence of other liquid staking service providers. Low staking profitability is also taken into account when making this decision. With the current Total Value Locked (TVL) of 151 million #MATIC tokens, a nominal yield of 4.17%, and a 5% #DAO commission, it is expected that the project will only earn $166,863 per year.

The proposer also mentioned the temporary suspension of fund withdrawals from the protocol for 25 days after a network upgrade that resulted in an error. They emphasize the importance of considering reputational risk and express satisfaction that negative sentiments within the community (FUD) did not arise at the time.

The developer also points out significant challenges associated with the planned transition to the Polygon 2.0 architecture, expected over the course of several years. This transition will require substantial changes and additional audit expenses, which may lead to the aforementioned issues.

The proposer suggests focusing solely on working with the Ethereum network and avoiding the risks associated with other blockchains that have a low Total Value Locked (TVL) in circulation.

Lido Finance recently announced the discontinuation of support for the Solana network.

It is worth noting that Glassnode analysts conducted an analysis of the impact of Lido's liquid staking on the Ethereum network and predicted further growth in the protocol's share in this segment.