Support for an interface to withdraw coins from the blockchain was discontinued back in early February

Bug preventing the withdrawal of SOL tokens has been found in the Lido protocol code

03.04.2024 - 08:40

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3 min

What’s new? A bug has been discovered in the smart contracts of the largest liquid staking protocol, Lido, that prevents users from withdrawing locked native tokens of the Solana (SOL) blockchain. Last October, the Lido team announced that it would stop supporting SOL staking due to unsustainable financial performance. The SOL withdrawal interface was disabled on February 4, and later a bug in the code that prevents users from withdrawing their assets was also reported.

Material by DL News

What else is known? Lido allowed users to block SOL tokens and receive stSOL (staked SOL) coins in return, so users could simultaneously receive staking rewards and use the same assets in other protocols for additional yield.

However, Lido’s Solana staking service was not as popular compared to rival protocols Marinade and Jito. As a result, the shutdown of the service was announced in October, the node shutdown began on November 17, and the web page that allowed users to switch back from stSOL to regular SOL was removed on February 4.

By the time the interface was removed, users still held 1 120 000 stSOL worth over $24 million on 31 000 wallets. Thus, a similar amount of SOL was locked into the Lido contract.

The removal of the interface forced users to interact directly with the protocol code to withdraw funds, which is difficult and dangerous for those without programming skills. In addition, there is a bug in the code itself that affects the protocol’s smart contracts and prevents withdrawals. This was reported by P2P, the company that managed the Lido staking service for Solana.

According to P2P product manager Pavel Pavlov, changing the smart contract is a rather complex and lengthy process, and it is not yet possible to give an exact timeframe for the fix.

However, users can resort to alternative options. For example, it is possible to exchange stSOL tokens for SOL via the Sanctum protocol, as one of its developers told DL News in a comment.

Solana has overtaken Ethereum in weekly stablecoin transaction volume with a $365 billion figure

Solana has overtaken Ethereum in weekly stablecoin transaction volume with a $365 billion figure

Solana has reached $854,5 billion since the beginning of the month

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Lido is not only the largest liquid staking protocol but also the overall leading protocol in the decentralized finance (DeFi) sector. Its total value locked (TVL) exceeds $31,8 billion. It currently supports staking of native tokens of Ethereum (ETH) and Polygon (MATIC) blockchains.

At the same time, users withdrew almost 301 000 ETH from Lido over the past month, while the inflow of competitor ether.fi exceeded 400 400 coins. On March 18, crypto exchange Binance listed the native token of ether.fi (ETHFI), and the protocol’s TVL grew from $1,78 billion to $3,28 billion over the month.

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