Lido Finance Announces Service Updates Including Ceasing Operations on Solana
Lido Finance to Cease Services on Solana
In its latest announcement, the liquid staking protocol Lido Finance has stated that it will cease offering services on the Solana blockchain.
Key Details
In a blog post dated October 16, Lido Finance revealed that while users will still earn staking rewards on the platform, they must unstake (withdraw) their assets by February 4, 2024. This decision follows a funding proposal from P2P Validator, the entity managing Lido on Solana, which was not approved, leading to the cessation of services on the Solana network by Lido.
Additional Updates from Lido Finance
Alongside the announcement regarding Solana, Lido Finance also shared other significant updates for October. These include:
- Expansion on L2 and Cosmos Ecosystems: Lido is extending its reach to Layer-2 solutions and the Cosmos network.
- Implementation of Trustless Oracle: Plans are underway to introduce a Trustless Oracle model, enhancing the security and reliability of staking data.
Recent Challenges and Solutions
Lido Finance has faced several challenges recently, including slashing incidents involving Validators. Despite these setbacks, the project has quickly addressed and mitigated the impacts, ensuring minimal losses. A detailed post-mortem report has been published to explain the recent slashing incident.
What's been happening on the Lido tech side this month? 🖥️
— Lido (@LidoFinance) October 16, 2023
1⃣ SDK Beta Version Launch
2⃣ Open Source Staking Widget
3⃣ Lido on L2
4⃣ Lido on Holesky
5⃣ Anchor Sunset Update
6⃣ Token Integration Guide Updates
7⃣ Trustless Oracles
👇
This isn't the first time Lido Finance has encountered slashing issues on Ethereum. In April 2023, a similar incident occurred, resulting in a loss of 20 ETH at that time.
This week @launchnodes underwent a slashing event impacting 20 validators operated using the Lido protocol.
— Lido (@LidoFinance) October 13, 2023
The root cause is a non-optimal fallback process employed while addressing datacenter issues, coupled with no slashing protection on Web3signer.https://t.co/R5Ugma69i2
Conclusion
Lido Finance's decision to stop services on Solana marks a significant shift for the protocol, reflecting the ongoing adjustments and strategic decisions being made to optimize its operations and expand its reach. Users on Solana are advised to withdraw their staked assets before the February deadline, and the broader Lido community can look forward to new developments in the L2 and Cosmos ecosystems.
