24 Million USD in Solana (SOL) Stuck in Lido Due to Programming Error
24 Million USD in Solana (SOL) Stuck in Lido Due to Programming Error
Users staking SOL through Lido currently cannot withdraw assets worth 24 million USD due to a programming error.
According to DLNews, the liquid staking protocol Lido (LDO) has identified a programming bug on the Solana blockchain that is preventing users from withdrawing 24 million USD worth of staked SOL.
Lido, despite being the largest DeFi protocol on Ethereum with a TVL of 31 billion USD at the time of writing, has not gained much traction on Solana. Competing projects like Jito (JTO) and Marinade (MNDE) are more popular on this blockchain. This lack of popularity led Lido to announce in October 2023 that it would cease support for Solana, instructing users to withdraw their funds by February 4, 2024.
However, when Lido stopped providing the interface for users to convert staked tokens (stSOL) back to SOL, its smart contract still held 112,000 stSOL, valued at 24 million USD at the time of writing. Since the deadline, users have had to interact directly with the smart contract to retrieve their assets—a challenging task for those without advanced blockchain technical knowledge.
Some investors who missed the deadline expressed frustration on Lido's Discord, stating they "are not developers" and thus cannot withdraw their funds without the original web interface.
Further complicating the situation, a developer from P2P, the operator of Lido's liquid staking solution on Solana before its termination, announced on March 30 the discovery of a bug in the smart contract that prevents withdrawals.
This developer indicated that fixing the bug requires altering the smart contract's code, a process that will take considerable time and effort, making it uncertain when the issue will be resolved.
Meanwhile, other community members suggested alternative methods for stSOL holders to exchange their tokens, such as using the Sanctum protocol.
DLNews noted that while 65% of SOL's total supply is staked, only 3.5% is through liquid staking projects, indicating that this area has room for growth on Solana.
