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Decentralized liquid staking protocol Lido Finance has announced a decision to cease operations on the Solana blockchain following a community vote in Lido’s decentralized autonomous organization.

The proposal to sunset Lido on Solana was first put forward by Lido’s peer-to-peer team on Sept. 5, citing unsustainable financials and low fees generated by Lido on Solana. Voting commenced on Sept. 29 and finished a week later on Oct. 6.

“After extensive DAO forum discussion followed by community vote, the sunsetting of the Lido on Solana protocol was approved by Lido token holders and the process will begin shortly,” Lido explained in an Oct. 16 post.

Lido will not be accepting staking requests as of Oct. 16. Voluntary node operator off-boarding will begin on Nov. 17 and Lido users will need to unstake on Solana’s frontend by Feb. 4.

“After this date, unstaking will need to be done using the CLI,” Lido added.

After extensive DAO discussion followed by community vote, the sunsetting of Lido on Solana was approved by LDO holders and will begin shortly.More information here: https://t.co/MyImL1qpap

— Lido (@LidoFinance) October 16, 2023

The earlier proposal saw Lido seeking $20,000 per month from Lido DAO to support technical maintenance efforts involved with sunsetting operations on Solana over the next five months.

Lido’s statement on terminating services on Solana. Source: Lido.fi

Lido’s P2P team has been working on the Lido on Solana project since acquiring it in March 2022 from Chorus One.

Since the takeover, the P2P team has invested about $700,000 into Lido on Solana and made $220,000 in revenue, resulting in a net loss of $484,000, according to the mediakov, the author of the proposal.

The alternative in the Sept. 5 proposal was to provide more funding to Solana from Lido DAO — however 65 million (92.7%) of the 70.1 million LDO tokens (voted by token holders) were in favor of sunsetting operations on Solana instead, according to open-source voting platform Snapshot.

Lido explained the decision was a difficult but necessary one to make:

“Whilst this decision was difficult in the face of numerous strong relationships across the Solana ecosystem, it was deemed a necessity for the continued success of the broader Lido protocol ecosystem.”

Lido confirmed that staked-Solana (stSOL) token holders will continue to receive network rewards throughout the sunsetting process.

Lido’s staking services are now only supported on Ethereum and Polygon, where $14 billion and $80 million are staked, respectively, according to Lido’s website.

Lido launched on Solana on Sept. 8, 2021, when SOL was priced at $189 — an 87% fall from its current price of $24, according to CoinGecko.

Despite the news, SOL is up 8.6% over the last 24 hours.

SOL’s price movements over the last seven days. Source: CoinGecko

Magazine: DeFi Dad, Hall of Flame: Ethereum is ‘woefully undervalued’ but growing more powerful

The recent dovish comments by the U.S. Federal Reserve (Fed) mirror the events of early 2019, when Bitcoin experienced a significant surge.Bitcoin’s current value is $26,800, marking a 62% gain year-to-date.
Recent updates from the U.S. Federal Reserve (Fed) have stirred memories of early 2019 within the crypto community, an era which witnessed a dramatic Bitcoin rally. Now, with the current economic landscape mirroring similar events, Bitcoin enthusiasts are speculating on another potential surge according to CoinDesk’s update.
Starting from early 2022, the Fed increased interest rates by 525 basis points in a bid to curb inflation. Such liquidity tightening cycles have historically impacted risk assets, Bitcoin being no exception. However, this week marked a change in the tide. Federal Reserve policymakers, including Atlanta Fed Bank President Raphael Bostic and Minneapolis Fed President Neel Kashkari, hinted that future rate hikes might not be on the horizon. This sentiment was further echoed by Dallas Fed President Lorie Logan and Fed Governor Christopher Waller who suggested that the rising Treasury yields might have made additional hikes redundant.
Echoes from the Past and Future Speculations
Drawing parallels from the past, the Fed’s rate cycle that lasted until December 2018 peaked at 2.5%. Post this peak, the central bank went into observation mode for the next seven months. During this window, Bitcoin, after reaching its lowest in December 2018, climbed to a staggering $13,880 by June 2019.
Markus Thielen, a leading figure in research and strategy, highlighted this historical context in a note to clients, emphasizing that the recent events align with the Fed’s previous patterns. He drew attention to the fact that just like four years ago, the current pause in the Fed’s tightening cycle precedes the anticipated bullish Bitcoin blockchain’s mining reward halving.
Thielen further noted,
REFLECTING ON 2019, THE SEVEN-MONTH PAUSE POST THE FED’S RATE-HIKING CYCLE COINCIDED WITH A 325% SURGE IN BITCOIN’S PRICE.
He added that the present macroeconomic scenario strongly echoes 2019, where a pause in rate hikes led to a bullish run for Bitcoin.
Navigating the Future Landscape
While historical data suggests a favorable upward trend for Bitcoin, a sudden pivot by the Fed towards rate cuts may introduce volatility. Thielen advises traders to understand the rationale behind such rate cuts. He believes that cuts driven by economic frailty and declining inflation could carry bearish implications for the cryptocurrency.
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