Lido’s Staking Protocol Has Over $20 Million Worth Of Sol Stuck And Trapped

A glitch within Lido’s smart contracts has locked in staked SOL holders, rendering them unable to retrieve their funds from the protocol, currently trapping $24 million in deposits.

The already intricate process of reclaiming staked Solana (stSOL) through Lido on the Solana blockchain has been further complicated by a newly identified bug that bars withdrawals.

Pavel Pavlov, a product manager at P2P, the organization responsible for operating Lido on Solana, alerted the community to this withdrawal impediment via a message on Lido’s Discord channel dated March 30.

Pavlov detailed that the issue stems from the “split function” employed during the withdrawal phase of the smart contract, emphasizing the complexity and time required to amend the smart contract.

He further mentioned that the technical team plans to consult with Lido DAO to discuss the next steps and establish timelines for resolving the matter.

Users Could Still Get Their SOL Back Through The Sanctum Platform

Following a community decision in October, Lido concluded its operations on the Solana blockchain, setting a February 4, 2024, deadline for users to unstake their assets via the Solana frontend. Beyond this date, the unstaking process has turned significantly more complex, particularly for those unfamiliar with the protocol’s command line interface (CLI).

According to J, a pseudonymous member of the liquid staking protocol Sanctum, the main issue now is the malfunctioning of the CLI build provided by Lido, making the process not only more challenging but seemingly leaving users without a viable option.

J highlighted, in a statement on X, that the CLI’s complexity and the broken build essentially leave users feeling trapped, a situation that could have been avoided.

Nevertheless, J offered a solution through Sanctum, which facilitates the conversion of stSOL from any validator back to SOL with minimal slippage. This service, however, has not been adequately communicated to Lido’s users, potentially leaving many unaware of their options.

As of the latest reports, Lido held 112,931.34 stSOL tokens, valued at slightly more than $24 million.