Liquid staking giant Lido considers ending support for Polkadot (DOT)

Stop supporting Polkadot

The largest liquid staking protocol, Lido Finance (LDO), has proposed plans to stop supporting the Polkadot (DOT) ecosystem, it was revealed today.

In a proposal published on Lido’s governance forum, Lido’s partner developer MixBytes revealed its policy to stop development of the liquid staking service “Lido on Polkadot” on Polkadot on August 1, 2023. there is

“Lido on Polkadot” launched last June. Users were able to stake the crypto asset (virtual currency) DOT on Lido and earn protocol rewards, while operating the alternative asset (staking proof token) in the DeFi (decentralized finance) ecosystem.

Kosta Zherebtsov, Chief Product Officer of MixBytes, pointed out challenges in the market environment and protocol growth as reasons for stopping support for the Polkadot ecosystem. He added that the priorities were adjusted while development resources were limited.

Along with this plan, support for Kusama (KSM), Polkadot’s experimental network, will also be suspended.

Lido on Polkadot is made possible by the introduction of Lido by the Polkadot Moonbeam protocol. According to data site DefiLlama, Moonbeam’s Lido TVL (total deposit) is about 3 billion yen ($22.46 million), and Kusama is about a tenth of that.

As for future plans, Lido will stop depositing new DOT and KSM by March 15, and will automatically release staking in the second half of June. Plans are in proposal stage and subject to change due to community discussion.

connection:Polkadot Enables Liquid Staking, Boosting DeFi Operations

What is Lido

Lido is the largest provider of “liquid staking” that allows you to manage alternative assets while receiving staking rewards for PoS chain cryptocurrencies. The TVL of Ethereum (ETH) on Lido is about 1.2 trillion yen ($8.9 billion), accounting for 30% of the total ETH staking market (5,675,000 ETH).

In October 2022, Lido began expanding Ethereum (ETH) to Layer 2 “Aribitrum, Optimism”. Users can convert stETH into the wrapped asset “wstETH (Wrapped stETH)” on Ethereum mainnet Lido, and then transfer wstETH on the official bridge between Aribitrum and Optimism. Lido’s L2 deployment expands the range of operational strategies for Ethereum staking contributors.

connection:Lido’s stETH Begins Deployment to Ethereum L2

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