Lido’s SOL holders are frustrated by being stuck on a $24M ‘broken’ contract

Up to $24 million worth of tokenized staked Solana (stSOL) was accidentally locked on liquid storage platform Lido due to a faulty smart contract.

Lido in Solana – which allowed its users to share any amount of Solana (SOL) for an effective 5% yield – was sunsetted in October last year due to unsustainable financials and low payments.

Until February, users were given the option to uninstall Solana via a user-friendly front end – but that was sunset, leaving them with only the option to uninstall Solana manually via Solana's command-line interface (CLI).

According to messages posted on Lido's Discord channel in March, the CLI proved to be too complicated for some users. According to Solscan data, up to $24 million worth of stSOL is still circulating in 31,588 holdings.

Some on Discord say the process is too complicated for “devotees”, while others say we've encountered unknown errors despite following the instructions on Lido on So.

User ericxtang wrote on the Discord channel on March 15, “Unable to uninstall stSol because neither of the 2 solutions provided on Lido's website work.”

“I tried to remove STSOL a month ago, but it's still stuck on verification and won't go back to SOL, though. [burned]” wrote another user, “Number9guy”.

The problem may not be the result of user error.

In the year In a March 30 Discord message, Pavel Pavlov, product manager at P2P Validator — once the team behind Lido by Solana — explained that there was a problem with the smart contract behind the extraction function.

“It is suspected to be related to changes in the rent-free split logic,” Pavlov said.

Pavlov added that while the issue is known, P2P also has “no influencers in the situation” and is now reaching out to the Lido DAO to change the smart contract.

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“Changing the smart contract is very important in terms of complexity and time. So the technical team reaches out to the Lido DAO and synchronizes it in terms of functionality and time.

The team is exploring options to explore solutions that don't require changes to the smart contract, he wrote.

“I can imagine how sad this news must be, but unfortunately, there are currently no ETAs. As mentioned earlier, the team is exploring several avenues to resolve it with full commitment and diligence.

Meanwhile, some users suggest using the on-chain stability protocol Sanctum or Jupiter (which run through Sanctum) to exchange stSOL for SOL or other liquid tokens.

Lido Finance did not immediately respond to a request for comment.

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