Concerns arise among SOL holders who have staked their tokens as approximately $24 million worth of tokenized staked Solana (stSOL) has become unintentionally locked due to a malfunctioning smart contract on the liquid-staking platform Lido.
Lido on Solana, which previously allowed users to stake any amount of Solana for a 5% yield, was discontinued in October 2023 due to financial sustainability issues and minimal fees.
Until February, users had the option to unstake their Solana through a user-friendly interface, but this feature was also discontinued, leaving users with the manual option of unstaking via Solana’s command line interface (CLI).
However, some users have found the CLI process too complex, and several complaints were recorded on Lido’s Discord channel in March. Data from Solscan indicates that around $24 million worth of stSOL remains locked across 31,588 holders.
the solana channel of the lido discord is a mess
stSOL holders trying to unstake completely lost and abandoned, CLI tooling broken.
there is over $24m of SOL stuck in stSOL.
i know stSOL is depreciated, but i don’t think this the right way to treat your users @LidoFinance
— j | sanctum (@eggpanned) March 29, 2024
Several users have reported difficulties, with some stating that the provided instructions did not resolve their issues.
“Cannot unstake stSol because none of the 2 solutions provided on the Lido site actually works,” user ericxtang wrote in the Discord channel on March 15.
“I tried unstaking StSOL about a month ago, but it’s still stuck with a validator and never went back to SOL, despite being [burned]” another user, “Number9guy,” wrote.
A Discord message from Pavel Pavlov, a product manager at P2P Validator, the team formerly associated with Lido on Solana, revealed that the problem lies with a flaw in the smart contract responsible for the withdrawal function. Pavlov mentioned suspicions that the issue could be related to changes in the Rent-Exempt Split logic.
However, Pavlov noted that P2P lacks control over the situation and is now communicating with the Lido DAO to potentially amend the smart contract.
In an update on the Lido Solana Discord page, Pavlov stated that the P2P team has successfully resolved the issue and launched an updated maintainer bot. Users are now able to withdraw stSOL using CLI, with further guidance provided in an official guide.