The collaboration between the Lido DAO and MixBytes has been a long and productive journey, and MixBytes is incredibly grateful for the trust, participation and support that was received from users and ecosystem projects, including Moonbeam.
While we are proud of what we achieved, the decision to sunset Lido on Polkadot and Kusama was made through mutual agreement with the recognition of a few key challenges under current implementation that led to unmet financial expectations and include:
- Protocol Adoption: Data related to adoption and growth did not meet business case expectations to sustain investment.
- Current Market Conditions: Challenged macro economic factors and adjacent lack of liquidity in Polkadot's DeFi ecosystem undermined the value proposition of liquid staking.
- Limited capacity: The reliance on the Lido DAO for support caused occasional inefficiencies and bottlenecks to make progress at the required speed of execution.
- Balancing Ethereum priorities with Polkadot and Kusama: With the relative importance of Lido's infrastructure to Ethereum relative to other networks, the balance of priorities often leaned towards Ethereum first.
While the Lido DAO offers among the most robust and trusted liquid staking protocols across PoS networks, a dedicated focus on Polkadot and Kusama would have enabled the Lido on Polkadot and Kusama protocols to align better with its ecosystems.
Lido research posts for reference: