Lido to Stop Pledge Plans on Polkadot and Kusama: What Does It Mean?

According to a blog post by Lido developer MixBytes, the DeFi pledge service Lido will stop its pledge plans on Polkadot and Kusama on August 1st. Polkadot and Kusama no longer accept deposits, and all assets will be automatically pledged on June 22. The official termination date is August 1st. Currently, there are a total of $4 million worth of DOT tokens and $75000 worth of KSMs on Lido.

Lido will discontinue its pledge plans on Polkadot and Kusama on August 1st

Lido developer MixBytes announced in a recent blog post that the popular DeFi pledge service Lido will stop its pledge plans on Polkadot and Kusama as of August 1st. This news has been met with mixed reactions from investors and users of Lido who had been using the service to earn staking rewards on these blockchains.

What is Lido?

Before we dive deeper into the implications of Lido stopping its pledge plans, it’s important to understand what the service does. Lido is a decentralized finance (DeFi) project that provides staking infrastructure for popular proof-of-stake (PoS) blockchains. Staking is the process of holding and validating cryptocurrency on a blockchain network to help secure the network and earn rewards in return. Lido allows users to stake their tokens with the service and earn staking rewards without having to worry about the technical complexities of running a validator node.

Why is Lido Stopping Its Pledge Plans?

According to MixBytes, Polkadot and Kusama no longer accept deposits for staking, and all assets will be automatically pledged on June 22nd. This means that any users who had previously deposited their DOT tokens or KSMs with Lido will have their assets automatically pledged on these blockchains on that date. After this, Lido will no longer accept new pledges on either of these blockchains, and any existing pledges will be automatically withdrawn on August 1st.

What Does this Mean for Investors and Users of Lido?

The news of Lido stopping its pledge plans on Polkadot and Kusama has understandably caused some concern among investors and users of the service. However, it’s important to note that Lido will continue to support other PoS blockchains, such as Ethereum 2.0, Terra, and Solana, and users can continue to earn staking rewards on these blockchains through the service.
Additionally, Lido’s decision to stop its pledge plans on Polkadot and Kusama has been attributed to the increasing complexity of managing multiple staking networks. By focusing on fewer blockchains, Lido can improve the reliability and security of its infrastructure and provide a better user experience overall.

Conclusion

In conclusion, Lido’s decision to stop its pledge plans on Polkadot and Kusama is not necessarily bad news for investors and users of the service. While it may cause some disruption in the short term, it is ultimately a strategic move to ensure the continued success of Lido as a leading DeFi project. As the DeFi space continues to evolve, it’s important for projects like Lido to adapt and provide the best possible services for their users.

FAQs

1. Can I still stake my DOT tokens or KSMs with Lido after August 1st?
No, Lido will no longer accept new pledges on Polkadot and Kusama after August 1st, and any existing pledges will be automatically withdrawn on that date.
2. Will Lido continue to support other PoS blockchains?
Yes, Lido will continue to support other PoS blockchains, such as Ethereum 2.0, Terra, and Solana, among others.
3. What are the advantages of staking with Lido?
Staking with Lido allows users to earn staking rewards without having to worry about the technical complexities of running a validator node. Lido also provides a more user-friendly and accessible way to stake cryptocurrency compared to other staking solutions.