Solana locked token crisis would have been solved

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The crisis of frozen Solana tokens on the Lido liquid staking platform would have come to an end after four days of work by the P2P technology firm, which managed to solve a failure that temporarily blocked user funds.

On Discord, the P2P company’s product manager, Pavel Pavlov, indicated that they had finally fixed the bug in the bot maintenance, which was the cause of the weekend failure, when nearly USD 24 million denominated in Solana (SOL) were blocked.

In a message, Pavlov also said that “some improvements” were made to the command lines (CLI) of the Solana network, in order to facilitate the withdrawal of staked Solana (stSOL), which is done by converting those tokens to SOL.

“Now, you’re all set to give stSOL withdrawal using CLI a try, and don’t worry, we’ve got you covered with our official guide,” Pavlov said.

This way an apparent end to several days of anguish for SOL token holders staked on Lido, which total more than 31,592 wallets, according to Solscan data. That monitoring site also shows that there are 112,700 stSOLs in circulation delivered in exchange for the SOLs locked in Lido, valued at about USD 24.9 million.

What happened?

On March 30, Pavlov, who represents the P2P company, which was in charge of running the Lido liquid staking protocol on the Solana network until October 2023, alerted of an error that led to the freezing of funds of the users.

It indicated that there was an error in a bot Lido maintenance, which is one of the largest staking protocols in decentralized finance (DeFi), with more than USD 31 billion in deposits.

According to Pavlov, the bug made it impossible to update the exchange rate, leading to failures in destaking and consequently “locking user funds in the contract.” However, the P2P team “worked hard” to resolve the situation, according to Pavlov.

It should be noted that the P2P work was done even though Lido’s staking service on Solana was suspended several months ago. In September 2023, Lido DAO (the autonomous community organization of Lido) voted to remove the project, considering that they unsuccessfully entered a competition with big players, such as Marinade and Jito.

Due to the suspension of the Lido service in Solana, the developers removed the web page that allowed stSOL holders to exchange their tokens for SOL. That was in February of this year, when the simple interface was dismantled where users could make their transactions.

This has left investors with only the option of withdrawing their funds manually, using Solana’s command line interface (CLI). An alternative that has been cumbersome for some users especially because it requires prior technical knowledge.

Given this, P2P committed to helping users withdraw their tokens. “If you encounter any further obstacles along the way, please feel free to contact us,” Pavlov noted in his Discord message.

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