MixBytes to End Technical Support for Lido on Polkadot and Kusama Liquid Staking Protocols

By Tsunami 03/9/23 4:13 AM

MixBytes, the development team behind the popular Lido liquid staking protocols on Polkadot and Kusama, has announced that it will cease technical support for both protocols as of August 1, 2023. The decision was made due to a combination of market conditions, protocol growth, limited capacity, and priority alignment.

Despite the challenges, MixBytes has expressed pride in its achievements with Lido and gratitude towards its users and partners who trusted the solution. The team has committed to making the sunset process as smooth as possible for those who have supported them.

The process will begin on March 15, 2023, when new staking deposits will no longer be accepted into Lido on Polkadot and Kusama protocols. Reward issuance and redemptions will be halted on June 15, 2023, and assets will remain accessible via UI for the protocol if previously unbonded.

On June 22, 2023, unbonding will be enforced, and assets will be automatically unstaked from the relay chain. Funds will be relocated to parachains on July 24, 2023, and can only be claimed via UI for the protocol. Finally, on August 1, 2023, the termination will become official, and an alternative host for the UI will be set up by the community.

In order to support technical maintenance efforts for the five months leading up to the termination, MixBytes is seeking $20,000 per month from Lido DAO.

Kosta Zherebtsov, MixBytes’ Product Director and Proposal Author, states: “The decision was made due to several challenges, including market conditions, protocol growth, limited capacity, and other priorities.”

Today’s proposal could impact around $25 million in assets. According to DefiLlama data, there is currently approximately $22.46 million worth of DOT and $2.34 million worth of KSM staked on Lido.

MixBytes has emphasized that it remains committed to pursuing development and contributing to the ecosystem of Polkadot, a blockchain network it believes has significant potential.

The announcement of MixBytes’ decision has garnered mixed reactions from the community, with some expressing disappointment and others offering gratitude and support for the work that has been done. As the sunset process unfolds, many will be watching closely to see how the situation develops and what the future holds for Lido on Polkadot and Kusama.