- Faulty smart contract locks $24 million in tokenized staked Solana (stSOL) on Lido’s liquid-staking platform.
- Users struggle with manual unstaking process after user-friendly options were removed, citing complexity and errors.
- P2P Validator team identifies smart contract issue, works on solutions without estimated resolution time.
A smart contract mishap has led to approximately $24 million in tokenized staked Solana (stSOL) being inadvertently trapped on the Lido liquid-staking platform. This predicament unfolded after the platform discontinued its user-friendly unstaking options, compelling users to revert to the more complex Solana command line interface (CLI) for manual unstaking.
The platform, which previously offered up to a 5% yield for staking Solana, ceased its operations in October 2023 due to financial challenges and low fees. Despite providing an option for unstaking through a more accessible front end until February, this too was phased out, leaving many to navigate the CLI, a task that has proven daunting for numerous participants.
Navigating Unstaking Challenges
The complexity of the CLI has led to a surge of complaints within Lido’s online communities, with users expressing frustration over the cumbersome process and encountering errors despite adhering to the provided instructions. According to the official Discord channel, the situation has escalated to the point where a significant amount of stSOL remains in circulation, spread across tens of thousands of holders.
Investigations into these issues revealed that the underlying problem might not stem from user errors. Pavel Pavlov, a product manager at P2P Validator, disclosed that a glitch in the smart contract’s withdrawal function was to blame. Specifically, changes in the Rent-Exempt Split logic within the contract were identified as the culprit.
Seeking Solutions Amid Uncertainty
The P2P team, while recognizing the issue, also acknowledged their limited capacity to enact immediate changes. Efforts are underway to engage with the Lido DAO for potential amendments to the smart contract. In the meantime, the P2P team has made progress by updating and launching a maintainer bot, offering a glimmer of hope for those affected.
Pavlov has assured users that stSOL can now be withdrawn using CLI, directing them to a comprehensive guide for assistance. The team is also exploring alternative solutions that wouldn’t necessitate modifications to the smart contract, although no definitive timelines for resolution have been provided.
As the community grapples with this setback, some have proposed utilizing on-chain stability protocols like Sanctum or Jupiter to exchange their locked stSOL for SOL or other liquid staking tokens, seeking a way out of this problem.
