Polygon News

Shard Labs’ LIDO Integrates with Polygon


Why LIDO-Polygon Integration?

Shard Labs’ LIDO is set for Polygon integration (further augmenting Polygon’s growth avenues). The Polygon Blockchain’s MATIC token will now have a liquid staking protocol readied under LIDO’s sponsorship. The LIDO-Polygon integration will allow users to stake MATIC (in a click) decentrally and securely (via Polygon PoS). The integration will also allow users to use MATIC in the secondary market. Decentralization is the core of blockchain projects, it boosts robustness and threat resistance. By using LIDO on Polygon, users won’t be required to lock their MATIC token in a staking contract. Instead, they will use stMATIC within Polygon’s DeFi ecosystem. This feature would considerably better their tokens’ incentives and delegation.

About Shard Labs & LIDO

Shard Labs is a technology startup established in 2019, solving real-world problems with holistic solutions for complex business problems. Shard Labs is building futuristic liquid staking on Polygon. LIDO is a liquid staking protocol plus a decentralized autonomous organization (DAO). As LIDO expands to integrate with Polygon, it’s ready for a multichain future.

LIDO-Polygon Integration & Enablements

Users will simply be sending up on the Polygon MAINNET their MATIC tokens to the newly-formed MATIC-LIDO contract. By doing so, they would receive an equal amount of stMATIC tokens (as a validation of MATIC staking position with LIDO validators). In essence, this means that users will be permitted to put to use their stMATIC tokens in various DeFi protocols (simultaneously). They will be, at the same time, earning a stake from their staked MATIC tokens, as well. The stake distribution process on the Polygon ecosystem would get decentralized. It would also augment the ecosystem’s capital efficiency.

LIDO-MATIC Validator Fee

LIDO-MATIC validators would be incentivized as follows:

  1. 5% staking rewards credited into the LIDO DAO treasury (20% of it going to Shard Labs for development and maintenance expenses)
  2. 5% credited to Node Operators
  3. 90% directed towards stMATIC value

Withdrawal & Governance

While stETH doesn’t offer withdrawals as yet (awaiting ETH 2.0), withdrawing stMATIC is quite possible. On the MATIC stake manager, users can either unstake all tokens or withdraw rewards in totality.

Timeline & Development

  1. Phase 1: Research and specification [Jul-Aug 2021]
  2. Phase 2: MVP Development and Testnet deployment [Jul – August 2021]
  3. Phase 3: Production v1 development and audit [August 2021 – December 2021]
  4. Phase 3: Mainnet deployment of v1 [January 2022]
  5. Phase 4: Support and maintenance for v1 and planning for v2

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