Lido Finance will close DOT and KSM steaking
It has become known that decentralized finance (DeFi) staking service Lido Finance will close its betting program for Polkadot (DOT) and Kusama (KSM). This will happen on August 1, 2023, as previously announced. This was announced by the developers of Lido MixBytes in their own blog on March 29.
MixBytes representatives said that this decision was not easy, but "it had to be made." They stressed that there were several reasons for stopping the service at once. Specialists assured: the introduction and growth in popularity of the product did not meet the "expectations of the business case for maintaining investment.
"Challenging macroeconomic factors and the related lack of liquidity in Polkadot's decentralized finance ecosystem have undermined the value proposition of liquid-stacking," MixBytes wrote. They noted that they will continue to develop new products and collaborate with Polkadot.
Lido Finance is a liquid-stacking protocol. It allows users to use staking ether (stETH) in other blockchain networks to simultaneously receive rewards for bets and have additional income.
Thus, representatives of the Lido Finance development team confirmed that all deposits are no longer accepted on the Polkadot and Kusama networks as of today. In addition, the assets will be automatically unlocked on June 22 of this year. According to analyst trackers, a total of $4 million worth of DOT tokens have been placed in the Lido protocol. As for the canary network, for it the figure was a modest $75 thousand.
As of 14:00 Moscow time on March 29, 2023, Polkadot cryptocurrency quotations were fixed at $6.24. The value of DOT coin increased by 6.7% over the past 24 hours. The market capitalization of the virtual asset stood at $7.3 billion.
