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$25 million worth of stSOL is stuck in the "broken" Lido smart contract

Forklog / 03.04.2024 / 10:33
$25 million worth of stSOL is stuck in the "broken" Lido smart contract

About $25 million in stSOL was inadvertently blocked in the Lido Finance smart contract on the Solana network. Some users are worried about the safety of funds..

the solana channel of the lido discord is a mess

stSOL holders trying to unstake completely lost and abandoned, CLI tooling broken.

there is over $24m of SOL stuck in stSOL.

i know stSOL is depreciated, but i don't think this the right way to treat your users @LidoFinance

— j | sanctum (@eggpanned) March 29, 2024

In October 2023, Lido decided to stop operations on the Solana blockchain after the DAO vote. Ecosystem support was finally stopped in February 2024, however, apparently, not everyone managed to withdraw funds for technical reasons.

Before the complete shutdown, users could cancel the SOL lock using the user-friendly UI, but then this feature remained only through the Solana command line interface (CLI).

A user under the nickname eggpanned stated that the CLI turned out to be too complicated for some community members, and a "complete mess" was happening in the thematic Discord channel. 

A number of users also encountered unknown errors, despite following the instructions from the Lido team. 

"It is impossible to cancel the stSOL bid, because neither of the two solutions presented on the Lido website actually works," ericxtang wrote on the Discord channel on March 15.

According to Solscan, at the time of writing, 112,703 stSOL worth more than $25 million is still in circulation. There are 31,590 holders in total.

In a March 30 message, P2P Validator product manager Pavel Pavlov said that there is a problem with the smart contract underlying the withdrawal function.

Despite the identification of the malfunction, the project "has no leverage over the situation," Pavlov said. He has already turned to the Lido DAO, since the smart contract can only be changed after the community's decision. 

According to him, the team is also exploring workarounds that do not require edits in the code.:

"I can imagine how disappointing this news can be, but unfortunately, at the moment there is no exact time [to solve the problem]. As stated earlier, the team is fully committed and diligently exploring many different paths."

Some users suggested using Sanctum or Jupiter protocols to exchange stSOL for SOL or other liquid staking tokens. 

Recall that at the end of February, the value of assets blocked in Lido reached $30.56 billion. The platform absolutely dominates the segment, controlling 32% of the total ETH volume in betting.

Against this background, the liquid restaking sector continues to gain popularity — the total blocked value of such platforms exceeded $8.6 billion.

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