A glitch in the smart contract of the Lido liquid-staking platform has unintentionally trapped around $24 million worth of tokenized staked Solana (stSOL). The incident has impacted the Lido on Solana service, which had discontinued its 5% yield on staked Solana due to financial concerns and low fees. After removing an easy unstaking option, users had to navigate the complexities of the Solana command line interface (CLI) for unstaking their tokens. Many users faced difficulties with this process, leading to frustrations expressed on Lido's Discord channel in March. Data from Solana scan shows that $24 million in stSOL is still held by 31,588 holders. Users reported errors despite following Lido's guidelines, including failed attempts to unstake stSOL. Pavel Pavlov, a product manager at P2P Validator, revealed that the withdrawal issue was due to a smart contract malfunction, specifically related to Rent-Exempt Split logic's modification. While P2P was unable to directly fix the problem, efforts were made to adjust the smart contract with input from the Lido DAO. Updates from Pavlov noted progress in deploying an updated maintainer bot for CLI withdrawals and providing a user guide. Despite ongoing challenges in addressing the smart contract issue, work continues on finding alternative solutions with no set timeline for resolution. Some community members suggested utilizing Sanctum or Jupiter for converting stSOL into SOL or other liquid staking tokens. As of now, Lido Finance has not issued a statement on the matter. For crypto press release submissions, contact sales@cryptointelligence.co.uk.
Smart Contract Flaw Locks $24 Million in Staked Solana on Lido Platform

by Giorgi Kostiuk
2 years ago

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