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Lido Shut Down Terra Support, Starts bLUNA And stLUNA Withdrawal

coingape.com 04 July 2022 14:39, UTC
Reading time: ~2 m

Defi staking protocol Lido has started unwinding Lido on Terra Classic and the Anchor-stETH integration from today onwards. The shut down will happen in 4 stages to provide users with adequate time and information to withdraw their assets by August 27.

Lido Starts Unbonding bLUNA and stLUNA

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:

  • Stage 1: Withdrawal Requests (July 4-18)
  • Stage 2: Unbonding Period (July 18 – August 12)
  • Stage 3: Claim Requests (August 12-26)
  • and Stage 4: 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.

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Finally, users can claim their tokens during the 3rd Stage by making claims of the withdrawn bLUNA and stLUNA.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.

Terra Classic Prices Skyrockets Amid Token Burns

Terra Classic (LUNC) and TerraClassicUSD (USTC) prices have jumped immensely in the last week due to community-led burn. Since June 27, LUNC price has increased by 120% and USTC price has rallied by over 500%.

At the time of writing, Terra Classic (LUNC) and TerraClassicUSD (USTC) are currently trading at $0.0001272 and $0.06553, respectively.

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