It is a new day in crypto land with a newer outlook for the future of some crypto assets. Soon after the news on Shapella upgrade, DeFi network Lido announced that it will be ceasing its services of staking DOT and Kusama by August of 2023. The announcement came in from MixBytes; the pseudonymous Lido developer.
As of August 1st, 2023, development and operation support for Lido on Polkadot and Kusama will be discontinued.
To learn more about the process and timeline, please see https://t.co/7WmdnRhFPm.
— Lido (@LidoFinance) March 29, 2023
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Timeline for the Lido Staking Service Termination
| Date | Process |
| March 15, 2023 | New staking deposits was no longer accepted into Lido on Polkadot and Kusama protocols. |
| June 15, 2023 | Reward issuance and redemptions will be halted. Assets will still remain accessible via UI for protocol if they were previously un-bonded. |
| June 22, 2023 | Un-bonding will be enforced. Assets will then be automatically un-staked from the relay chain. |
| July 24, 2023 | Funds will start to be relocated into para-chains, and they can only be claimed via UI for protocol. |
| August 1, 2023 | Official termination of the staking services. An alternative host for the UI will be arranged by the community. |
According to MixBytes, the staking of Polkadot and Kusama “Challenged macroeconomic factors and adjacent lack of liquidity in Polkadot’s DeFi ecosystem undermined the value proposition of liquid staking.” Other than that, MixBytes also stated several other reasons for the step taken by the DeFi protocol. Some of them are adoption and the growth of the services not meeting the “business case expectations to sustain investment.“
What is Lido?
Lido is a crypto-staking liquidity platform which allows users to stake their crypto assets in order to earn passive income on their holdings. Lido was launched in parallel with the Ethereum Beacon chain back in 2020; and it aims to solve the challenges with the non custodial staking services.
Did You Know? Lido DAO allows users to stake their crypto tokens without having them to lock.
The announcement blog also stated that while Lido will no longer be technically supporting Lido on Polkadot and Kusama protocols, they will continue to remain a part of the journey by introducing a new DotSama liquid staking solution!
Read More: Bitcoin Price Prediction
Other Crypto News:
- A Swiss-based nonprofit, ZeroSync Association, has been developing a tool which will allow users to validate the state of the Bitcoin network without the need to download the blockchain or put their trust on a third party for verification. In short, BTC users will soon be able to use ZK-proofs to speed up the process of verifying individual blocks and, with time, the entire blockchain.
Source: Cointelegraph
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