Lido Staking Service Shuts Down On Polkadot And Kusama: What This Means For Crypto Investors

Zinger Key Points
  • Challenged macroeconomic factors and lack of liquidity in Polkadot's DeFi ecosystem.
  • Deposits are no Longer accepted and assets will be unstaked automatically.
Lido Staking Service Shuts Down On Polkadot And Kusama: What This Means For Crypto Investors

Decentralized finance staking service Lido LDO/USD announced it will end its staking program on the Polkadot DOT/USD and Kusama KSM/USD blockchains on Aug. 1, as stated by a recent blog post by the pseudonymous Lido developer MixBytes.

MixBytes cited several reasons for stopping the service, including adoption and growth not meeting "business case expectations to sustain investment" and "challenged macroeconomic factors and adjacent lack of liquidity in Polkadot's DeFi ecosystem undermining the value proposition of liquid staking."

Lido is a liquid staking protocol that allows users to use Lido Staked Ether (CRYPTO: stETH) on other protocols and blockchains while reaping the staking rewards.

Also Read: Shiba Inu, Ether And VGX Tokens: What's Happening With Voyager's Crypto Assets?

Deposits are no longer being accepted on Polkadot and Kusama, and on June 22, all assets will be automatically "unstaked."

The official termination date is Aug 1.

In total, there is $4 million worth of staked DOT tokens on Lido and $75,000 worth of KSM.

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Photo: Courtesy Lido

Posted In: CryptocurrencyNewsMarketsBlockchaincrypto assetsdecentralized financeDeFiLiquid staking protocolStaked etherStaking service

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