Liquid staking protocol Lido (LDO) mentioned it could cease offering staking providers for Polkadot (DOT) and Kusama (KSM) on Aug. 1.

In accordance with a weblog put up by Lido developer MixBytes, the choice was made “due to a number of challenges, together with market circumstances, protocol development, restricted capability, and precedence alignment.”

The builders additional clarified that balancing its Ethereum staking providers with Polkadot and Kusama was a problem. It famous that “the steadiness of priorities usually leaned in the direction of Ethereum first [before other networks].”

“Challenged macro financial components and adjoining lack of liquidity in Polkadot’s DeFi ecosystem undermined the worth proposition of liquid staking.”

In the meantime, Lido nonetheless offers staking providers for networks like Polygon (MATIC) and Solana (SOL).

Lido not accepting new staking deposits for Polkadot, Kusama

The staking protocol mentioned it stopped accepting new staking deposits for Polkadot and Kusama on March 15. It added:

“Present stDOT and stKSM holders proceed to obtain rewards, and have the power to unbond stKSM/DOT to say xcKSM/DOT instantly from the Lido UI, and wrap or unwrap their tokens.”

Nevertheless, issuance and redemptions could be halted on June 15, and all property could be robotically unstaked on June 22, based on its timeline.

In the meantime, Mixbytes famous that it obtained an inflow of curiosity from the group who’ve proposed a brand new DotSama LST protocol to be operated by a newly shaped DAO. In accordance with the agency, it’s evaluating the potential of supporting a devoted DotSama native liquid staking answer technically.

In accordance with Lido’s web site, there are over 3.5 million staked DOT on its platform with a market cap of $20.6 million, whereas 43,201 KSM tokens have been staked with a market cap of $1.5 million.

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