Lido Finance considers discontinuing liquid staking on Polkadot and Kusama

This proposal comes after MixBytes, a partner developing liquid staking on Polkadot and Kusama for Lido, stopped supporting these networks.

Lido Finance considers discontinuing liquid staking on Polkadot and Kusama

According to one propose Posted on the governance forum on March 8, DeFi protocol Lido Finance is considering discontinuing liquid staking on the Polkadot and Kusama ecosystems.

The above decision was announced after MixBytes stopped providing technical support for Lido on Polkadot and Kusama from August 1, 2023.

MixBytes is a decentralized finance (DeFi) application developer founded in 2016. This company is a partner to help build Lido Finance’s liquid staking service on Polkadot and Kusama.

Kosta Zherebtsov, MixBytes Product Manager and Proposal Author says:

“The decision was made because of a number of challenges, including the market landscape, protocol evolution, capacity limitations, and several other priorities.”

Today’s proposal could affect about $25 million in assets. Extract data from DefiLlamacurrently has about 22.46 million USD worth of DOT and 2.34 million USD worth of KSM staking on Lido.

In addition, Zherebtsov also proposed to stop supporting DOT and KSM on Lido before March 15 and automatically unstake in June.

As Kyptos reportedliquid staking refers to the protocols for users participating in staking to receive rewards, but will not be locked up, but will receive a representative token (such as stETH) at a ratio of 1:1 to continue DeFi activities. on other platforms.

Lido Finance is one of the first liquid staking solutions and is dominating the entire array with nearly 9 billion worth of lockouts (TVLs) on the platform.

Total locked value (TVL) on Lido Finance. Source: DeFiLIama

LDO price has had a negative reaction in the past few days, following the general decline of the whole market and rumors of being touched by the SEC.

As of press time, LDO is trading around the $2.39 mark and has dropped nearly 6% in the past 24 hours.

1h chart of LDO/USDT pair on Binance exchange at 10:00 AM on 09/03/2023

Synthetic Kyptos

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