In a significant mishap on the Lido liquid-staking platform, approximately $24 million in tokenized staked Solana (stSOL) has been inadvertently trapped due to a glitch in the smart contract.
This incident affects the Lido on Solana service, which had previously offered users a 5% yield on staked Solana before being phased out in October 2023 amidst financial viability concerns and minimal fees.
Following the discontinuation of a user-friendly unstaking option in February, customers were left to navigate the complexities of the Solana command line interface (CLI) for unstaking their tokens.
This technical hurdle proved daunting for many, as reflected in the concerns voiced on Lido’s Discord channel in March.
Solscan data indicates that there remains a substantial $24 million in stSOL spread across 31,588 holders.
Discord users expressed frustration over the unwieldy process, highlighting errors encountered despite adhering to Lido-provided guidelines.
For instance, ericxtang lamented on March 15 that neither of the two solutions on the Lido site facilitated stSOL unstaking.
Similarly, “Number9guy” recounted an unsuccessful attempt to convert stSOL back to SOL, with the tokens remaining immobilized with a validator.
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Clarification came from Pavel Pavlov, a product manager at P2P Validator, formerly associated with Lido on Solana, revealing on March 30 that the withdrawal issue stemmed from a smart contract malfunction, specifically tied to the Rent-Exempt Split logic’s modification.
Despite recognizing the problem, Pavlov disclosed P2P’s inability to directly rectify the situation, prompting outreach to the Lido DAO for potential smart contract adjustments.
Subsequent updates from Pavlov indicated progress, with the deployment of an updated maintainer bot facilitating CLI withdrawals, accompanied by a guide for users.
Despite the challenges in altering the smart contract, efforts to identify alternative solutions continue, without a definitive timeline for resolution.
Pavlov empathized with affected users, assuring them of the team’s dedication to finding a resolution.
Some community members have proposed utilizing the on-chain stability protocol Sanctum or Jupiter, which integrates Sanctum, for converting stSOL into SOL or alternative liquid staking tokens. As of now, Lido Finance has not commented on the situation.
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