On Wednesday, a popular liquid staking protocol, Lido has parted ways with its partner in the Polkadot ecosystem, MixBytes. In a Twitter post by the staking platform, it decided to part ways with the partner in a mutual agreement. Occasioned by this development, support for development and operation of Lido on Polkadot and Kusama will be discontinued by August, 2023.
MixBytes, in its own statement, said Lido faced numerous challenges on Polkadot and Kusama. These challenges resulted into unmet financial expectations. As revealed, Lido’s data related to adoption and growth did not meet up with business case expectations. More so, the staking protocol lacked liquidity in the Polkadot’s DeFi ecosystem owing to the prevailing macro economic factors.
Occasioned by this development, Lido will stop the acceptance of new staking deposits on Polkadot and Kusama by March 15th. But, it says existing holders of $stDOT and $stKSM will continue to receive rewards till mid-June. After June 15, redemptions will be halted on the network. By June 22, all the assets will automatically be unstaked from the relay chain. Certainly, Lido wants to relocate these assets to parachains. This thus means users can only claim them via UI for protocol. However, by August 1, its team aims to halt the network.
Lido seeking 20k USD per month to support it’s technical maintenance
Meanwhile, Lido is seeking 20 thousand USD per month from its DAO to support the technical maintenance of the platform for the remaining five months. The protocol affirms their belief and support for the Polkadot network and its potential to to become a leading blockchain network. It promised to channel its commitment towards ensuring the development of the ecosystem. The staking platform thanked all the users and partners who trusted its solution and contributed to where it is today.
Recall that MixBytes, has over time, been assisting Lido Finance with building its liquid staking service on Polkadot and Kusama. Notably, Lido has nearly $9 billion worth of digital assets secured on its platform. This thus reflects the increasing interest from users for its liquid staking offering. It is noteworthy that liquid staking enables users to acquire rewards through their participation in staking activities.
With Lido, users receive stETH tokens, issued 1:1 to their initial stake. Usually, users use stETH balances like regular ETH to accumulate rewards. Worthy of note that Lido staking has no minimum deposits, thereby opening the offering to every interested user.