SOL Holders Fret Over $24M Stuck on ‘Broken’ Lido Contract

Up to $24 million worth of tokenized staked Solana (stSOL) has become locked on the liquid-staking platform Lido due to a faulty smart contract. Lido on Solana, which allowed users to stake their SOL tokens for a 5% yield, was terminated in October 2021 due to financial and fee issues. Until February, users could unstake their Solana through a user-friendly interface, but this option was also terminated, leaving them with only the option to manually unstake through Solana’s command line interface (CLI). Some users found the CLI too complicated and encountered errors despite following instructions provided by Solana on Lido. The total amount of locked stSOL is estimated to be $24 million across 31,588 holders.

Users on Lido’s Discord channel expressed their frustrations, stating that the unstaking process was complicated, and their stSOL tokens remained stuck with validators instead of being converted back to SOL. It appears that the issue may not be the result of user error. Pavel Pavlov, a product manager at P2P Validator, the team behind Lido on Solana, revealed that there was an issue with the smart contract responsible for the withdrawal function. The suspicion is that the problem is related to changes in the Rent-Exempt Split logic used in the withdrawal process.

Although the issue has been identified, P2P Validator has limited control over the situation and is now reaching out to the Lido DAO to potentially change the smart contract. Changing the smart contract is complex and time-consuming. The team is also exploring other options and workarounds that do not require changes to the smart contract. Unfortunately, there are no estimated timelines for the resolution at the moment.

Some users have suggested using on-chain stability protocols such as Sanctum or Jupiter to swap stSOL for SOL or other liquid staking tokens. These alternative options could potentially provide a way for users to access their locked funds. Lido Finance, the company behind the platform, has not yet responded to requests for comment on the situation.

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