Approximately $25 million in stSOL has been inadvertently locked in a Lido Finance smart contract on the Solana network, causing concern among some users about the security of their 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 cease operations on the Solana blockchain following a DAO vote. The support for the ecosystem was fully halted in February 2024, but it appears not all users managed to withdraw their funds due to technical issues.
Before the complete shutdown, users could unlock SOL using a convenient UI, but afterwards, this option was only available through the Solana command line interface (CLI).
A user known as eggpanned claimed that the CLI proved too complex for some community members, and described the related Discord channel as being in complete disarray.
Several users also encountered unknown errors despite following instructions from the Lido team.
“It is impossible to unstake stSOL because neither of the two solutions provided on the Lido site actually works,” wrote ericxtang in the Discord channel on March 15.
According to Solscan, at the time of writing, 112,703 stSOL worth over $25 million remains in circulation, with a total of 31,590 holders.
In a message dated March 30, Pavel Pavlov, a product manager at P2P Validator, reported an issue with the smart contract underlying the withdrawal function.
Despite identifying the malfunction, the project has “no leverage over the situation,” Pavlov clarified. He has already reached out to the Lido DAO, as the smart contract can only be altered following a community decision.
He mentioned that the team is also exploring workarounds that do not require code modifications:
“I can imagine how frustrating this news might be, but unfortunately, there is no exact timeline [for resolving the issue] at the moment. As stated earlier, the team is fully committed and diligently exploring various paths.”
Some users have suggested using the Sanctum or Jupiter protocols to exchange stSOL for SOL or other liquid staking tokens.
Back in late February, the value of assets locked in Lido reached $30.56 billion. The platform dominates the segment, controlling 32% of the total ETH staked.
Amidst this, the liquid restaking sector continues to gain traction, with the total value locked on such platforms exceeding $8.6 billion.