DeFi staking protocol, Lido has began unwinding Lido on Terra Classic and the Anchor-stETH integration. The four stages unwinding will begin today, according to reports.
The Lido community had passed the “Sunset Lido on Terra” proposal with 99% of voters agreeing to shut down Lido on Terra Classic and bETH. Out of the total Luna’s supply staked, 26% is staked on Lido.
With Terra’s Market and Staking modules disabled and Terra Station becoming unstable, bLuna and stLuna minting has stopped. This has led to the tokens being stuck.
The Lido on Terra unwind will happen in four stages. They are Withdrawal Requests (July 4-18), and Unbonding Period (July 18 – August 12). Other stages are Claim Requests (August 12-26) and lastly UI Shut Down (August 27)
Users can start requesting bLUNA and stLUNA withdrawals using the unbond feature at terra.lido.fi/unbond from July 4-18. In order to simplify the process, users can transfer all derivatives to a single wallet. It will prevent making repeat withdrawal requests.
The Process of Unwinding
Connect your Terra Station wallet and select “Classic” network under network. Thereafter, verify and sign to withdraw stLuna and bLuna. The 2nd Stage is between July 18-August 12, as the unbonding process takes 21-24 days to be completed. Moreover, users can check the withdrawal status on the “Claim” tab.
Finally, users can claim their tokens during the 3rd Stage by making claims of the withdrawn bLUNA and stLUNA.
The Lido-operated UIs will be officially shut down at the 4th Stage on August 27. After the shut down, users can only interact with the smart contracts via the command line interface and funds may be at risk of slashing.
In fact, node operators are free to keep the Terra validator running, or to shut it down.
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