- Lido-staked Solana holders have been unable to retrieve their staked SOL due to an issue with a withdrawal smart contract.
- Around $24 million worth of stSOL remains stuck on Lido’s platform despite the program being shuttered five months ago.
- Lido is exploring options to resolve the issue, including potentially changing the smart contract or finding workarounds, but there are no timelines available yet.
Lido-staked Solana holders have been unable to retrieve their staked SOL due to an issue with a withdrawal smart contract.
Background on Lido and staked Solana
Lido on Solana, which once let users effectively stake any amount of Solana (SOL) for a 5% yield, was sunset in October last year due to unsustainable financials and low fees.
Until February, users had been given the option to unstake their Solana through a user-friendly front end, but that too was sunset, leaving them with only the option of manually unstaking via Solana’s command line interface (CLI).
The issue with withdrawing staked Solana
The CLI has proven to be too complicated for some users, according to messages on Lido’s Discord channel. In March, Solscan data shows there’s as much as $24 million worth of stSOL still in circulation across 31,588 holders.
Some on Discord have complained the process was too complicated for the layman, while others claim they’ve run into unknown errors despite following instructions provided by Solana on Lido.
It turns out the issue may not be the result of user error after all. In a March 30 Discord message, Pavel Pavlov, a product manager at P2P Validator (the team once behind Lido on Solana), revealed there was an issue with the smart contract behind the withdrawal function.
“It is suspected to be associated with alterations in the Rent-Exempt Split logic,” Pavlov said. “The current implementation uses the split function in the withdrawal process of the smart contract.”
Pavlov added while the issue has been identified, P2P also has no levers of influence in the situation and it’s now reaching out to the Lido DAO to potentially change the smart contract.
Potential solutions
Changing the smart contract is “quite significant in terms of complexity and time,” Pavlov wrote. The team is also looking into options to explore workarounds that do not require changes in the smart contract.
Meanwhile, some users suggest using on-chain stability protocol Sanctum, or Jupiter which routes through Sanctum, to swap stSOL for SOL or other liquid staking tokens.
Lido Finance did not immediately respond to a request for comment.
Conclusion
For now, the $24 million in staked Solana remains inaccessible to users due to issues with the Lido withdrawal contract. While potential fixes are being explored, there is no timeline for when users may be able to access their funds.
