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According to MixBytes, “The decision to sunset Lido on Polkadot and Kusama was made through mutual agreement with the recognition of a few key challenges under current implementation that led to unmet financial expectations.”
Liquid staking platform Lido Finance (LDO) will end support for staking Polkadot (DOT) and Kusama (KSM) assets on August 1.
Earlier, MixBytes announced that it will stop providing technical assistance for KSM and DOT protocols to Lido. Soon, MixBytes’ Chief Product Officer, Kosta Zherebtsov, posted a proposal to sunset staking services for the two protocols on Lido DAO’s governance forum.
As of August 1st, 2023, development and operation support for Lido on Polkadot and Kusama will be discontinued.
— Lido (@LidoFinance) March 29, 2023
To learn more about the process and timeline, please see https://t.co/7WmdnRhFPm.
In its latest blog post, Lido’s partner MixBytes said the firms decided to end support for DOT and KSM due to the low adoption rate for the two protocols and a lack of liquidity in the Polkadot ecosystem. MixBytes also claimed that removing Kusama and Polkadot staking will allow Lido to prioritize its Ethereum (ETH) staking product.
As a result, Lido has ceased accepting new deposits for the two tokens. The platform will halt reward redemptions on staked Polkadot and Kusama assets on June 15, with plans to automatically unstake DOT and KSM tokens by the following week.
MixBytes noted that the unstaked funds will be relocated to parachains by July 24. Finally, Lido will officially end support for these protocols on August 1. MixBytes added that the User Interface on Lido will be updated to keep up with the proposed timeline.
Going forward, MixBytes plans to support a new DotSama liquid staking solution that will be supported by its own Decentralized Autonomous Organization (DAO). The firm added,
“Our supporters proposed to launch a new DotSama LST protocol operated by a newly formed DAO. MixBytes are excited and pleased with such support and is now considering passing its accumulated experience to that DAO to keep its creation alive!”