Liquid staking protocol Lido announced it has reached a mutual agreement with MixBytes, its partner in the Polkadot ecosystem, that development and operation support for Lido on Polkadot and Kusama will be discontinued on August 1st, 2023.
According to MixBytes, Lido on Polkadot and Kusama faced some key challenges that led to unmet financial expectations, including,
- The protocol's data related to adoption and growth did not meet business case expectations;
- The lack of liquidity in the Polkadot's DeFi ecosystem due to challenged macro economic factors;
- Lido's priorities leaning towards Ethereum.
Lido on Polkadot and Kusama had stopped accepting new staking deposits on March 15th. Existing $stDOT and $stKSM holders will continue to receive rewards until June 15th, when redemptions will also be halted. The assets will automatically be unstaked from the relay chain on June 22nd, and be relocated to parachains. Users can claim the assets only via UI for protocol. On August 1st, the protocol will officially sunset.
Meanwhile, MixBytes said it is evaluating the possibility of technically supporting a dedicated Polkadot and Kusama native liquid staking solution.
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Liquid Staking Derivatives (LSD)