Faulty Smart Contract Locks $24 Million stSOL on Lido Platform
Summary:
Nearly $24 million in tokenized staked Solana (stSOL) has been accidentally locked on liquid-staking platform Lido due to a faulty smart contract. The complexity of Solana's command line interface has been problematic for some users, leaving their investments stuck in circulation. While the issue has been identified, the process to resolve it through changes in the smart contract has been described as complex and time-consuming.
A faulty smart contract has inadvertently confined tokenized staked Solana (stSOL) valued at around $24 million on the liquid-staking platform, Lido. Initially, the Lido on Solana scheme allowed users to flexibly stake any Solana (SOL) volume for a 5% yield until it was halted in October of last year due to financial unsustainability and low charges. Since February, users were given the opportunity to withdraw their Solana via an easy-to-use portal which was also later discontinued, with users left only with the manual withdrawal option via Solana's command line interface (CLI). However, the complexity of CLI has proven to be a problem for some users, evidenced by messages on Lido's Discord channel in March. Data from Solscan conveys that around $24 million worth of stSOL remains in circulation among 31,588 holders at this time.
Several Discord users have complained that the process was overly complex for an average user and others claim that they encountered unfamiliar errors despite following Solana's instructions on Lido. One user reported a failed stSOL unstaking attempt, stating that the two solutions proposed on the Lido website yielded no results. Another complained that despite his attempt to unstake stSOL about a month ago, the transaction remained stuck.
The problem, according to a Discord message from Pavel Pavlov, product manager at P2P Validator, the team that formerly operated Lido on Solana, might be related to a bug in the smart contract behind the withdrawal function. He pointed to the potential connection to changes in the Rent-Exempt Split logic, where the current implementation employs the split function in the smart contract's withdrawal process.
Pavlov noted that while the problem has been spotted, P2P has "no levers of power" to address the situation and is now contacting Lido DAO to possibly amend the smart contract. He emphasized that altering the smart contract would be a considerable task in terms of complexity and time and highlighted the investigation of alternatives that wouldn't necessitate smart contract changes.
The users, meanwhile, have suggested utilizing on-chain stability protocol Sanctum or Jupiter, which routes through Sanctum, to swap stSOL for SOL or other liquid staking tokens. Lido Finance has yet to respond to a request for comment.
Published At
4/3/2024 5:08:15 AM
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