Short Lido on Polygon introduction for you if you skipped the last article! 🙂
Lido, the largest liquid staking protocol on Ethereum, Terra, and Solana, is expanding to Polygon!
Shard Labs is bringing Lido to Polygon to enable users to stake MATIC token in a decentralized, secure way and use them on the secondary market with a simple click of a button on the UI. This integration will boost the entire ecosystem.
Now, let’s go through updates and Lido on Polygon on Goerli Testnet!
Polygon test network, Mumbai is connected to Ethereum test network, Goerli. All Mumbai staking contracts are deployed on Goerli, which makes Lido on Polygon development perfect, since Goerli is the most popular Ethereum testnet. How to participate?
Our main goal with this testnet release is to get feedback from the community and further test the UI/UX to ensure that everyone can intuitively interact with the protocol.
As a user, you will need some Goerli ETH to cover the gas cost for your transactions and MATIC tokens on Goerli, which you can get using the faucet.
MATIC token faucet
Once you have your tokens ready, proceed to testnet.polido.shardlabs.io , connect your wallet and try to submit your MATIC tokens. After that, you should see some stMATIC tokens in your wallet.
stMATIC token address on Goerli is 0x9a7c69a167160c507602ecb3df4911e8e98e1279 (Etherscan)
Metamask users can use this guide to add the custom token.
You can expect user and developer documentation to roll out soon. Until then, please use our previous article as a reference.
What will be different on the mainnet?
Testnet release is a good representation of the protocol. Still, some things will be different once we launch on Ethereum mainnet:
- User interface and web application
- Node operators
- Transaction cost
- stMATIC token utility
- Governance and roles
Let’s briefly describe each of these differences, so you can know what to expect from Lido on Polygon.
The current UI is based on the Lido frontend template, and it has minimal modifications that allow Lido on Polygon functionalities. Gas estimation is not optimized. You can see some template text, and overall, this is not the UI we want users on mainnet to use for interacting with the Lido on Polygon protocol.
We are working with Lido team to bring the best possible user experience for our production release.
For our testnet release, we currently have only one validator that Shard Labs operate. It is not decentralized, and this setup is only valid for testing purposes.
We are working hard to bring reliable node operators to join Lido on Polygon once we launch. That means we will launch with more validators, and the protocol will be more robust and decentralized.
With more node operators, transaction cost will not be the same for some functions like depositing tokens, withdrawing, and claiming them. The logic of these functions depends on the number of validators and some parameters set by the Lido DAO.
stMATIC token utility
Since Goerli testnet tokens do not hold any value, there is no liquidity in widespread DeFi protocol deployments, so you will not be able to experience the full potential of stMATIC token. Even though we are aware of that, we will bridge stMATIC token to Polygon testnet (Mumbai) and let anyone play with it on both chains.
We encourage you to create some pools on decentralized exchanges, lending & borrowing protocols, bridge it to other chains, and give us your feedback.
How to contribute?
There are multiple ways to be part of this project:
- Become a Lido on Polygon node operator by running a Polygon validator
- stMATIC token integration in your DeFi application
- Take a look at our Github repository, write requests, investigate the code
- Spread the word 🙂
If you would like to integrate stMATIC in your protocol or be one of the Lido on Polygon node operators, please reach out to us here: [email protected]
This article was originally published by Shard Labs on Medium, where people are continuing the conversation by highlighting and responding to this story.