Lido Finance Consider Stopping Liquid Staking On Polkadot And Kusama

Key Points:

• Lido Finance is considering discontinuing liquid staking on Polkadot and Kusama.
• The proposal comes after MixBytes will no longer provide technical support for Lido on Polkadot and Kusama from August 1, 2023.
• This proposal could affect around $25 million in assets, including Polkadot and Kusama’s native tokens on Lido.

Lido Finance, the market’s most extensive staking protocol, governs ending liquid staking on the Polkadot and Kusama systems, according to a proposal submitted on the forum on March 8. After MixBytes stopped technical offering assistance for Lido on Polkadot and Kusama as of August 1, 2023, the decision mentioned above was made public.

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.

The announcement said that while both Lido DAO and MixBytes are proud of what has been achieved and are grateful to all users and partners for trusting the solution, the decision was made due to many challenges, including market conditions, protocol growth, limited capacity, and preferred alignment.

“The decision was made because of several challenges, including market conditions, protocol growth, limited capacity, and priority alignment,” said Kosta Zherebtsov, chief product officer of MixBytes and the author of the proposal.

Today’s proposal could affect about $25 million in assets. Extracting data from DefiLlama, there are about $22.46 million worth of DOT and $2.34 million cost of KSM staking on Lido.

With almost $9 billion worth of digital assets locked on the platform, Lido has become the DeFi world’s most extensive protocol. Its expansion is a result of continually rising investor demand for liquid staking.

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

Luquid Staking is one of the popular ways to help users participate in receiving rewards. It is considered as one of the market trends that will have the strongest potential for growth this year.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Foxy

Coincu News