Lido Expands to Polkadot and Kusama, Boosting Multichain Liquid Staking Ecosystem

In July 2022, liquid staking giant Lido Finance took a major leap in its multichain strategy by officially expanding support to Polkadot and Kusama, two of the most prominent blockchain networks in the Web3 ecosystem. This move not only solidified Lido’s position as a leader in the liquid staking space but also signaled growing momentum for multichain staking ecosystems that prioritize decentralization, interoperability, and liquidity.

The integration brings Lido’s signature model—staking without lock-ups—into ecosystems that are natively built around parachain architecture and shared security, offering a unique bridge between Lido’s Ethereum-centric users and the rapidly evolving Polkadot/Kusama staking community.

Liquid Staking Meets Parachains

Traditionally, staking on Polkadot and Kusama requires locking up tokens for extended periods, limiting liquidity and reducing flexibility for investors. Lido’s liquid staking solution solves this challenge by allowing users to stake their DOT and KSM tokens and receive staked asset derivatives (stDOT and stKSM) that remain tradable and usable within DeFi protocols.

This enables users to maintain exposure to staking rewards while still being able to deploy capital across multiple DeFi platforms—an especially attractive feature during bear markets or volatile conditions.

Why Polkadot and Kusama?

Polkadot and Kusama are unique in their approach to blockchain scalability and interoperability. Both utilize a relay chain + parachain architecture, where parachains act as individual blockchains connected to a central relay chain for shared security and finality.

By expanding to these ecosystems, Lido taps into a vibrant developer and DeFi community that values flexibility and composability. The inclusion of liquid staking in these networks is seen as a way to unlock new use cases, such as:

• Collateralization of stDOT/stKSM for lending/borrowing

• Participation in parachain auctions using staked derivatives

• Integration into multichain liquidity pools

Lido’s Integration Strategy

Lido’s expansion to Polkadot and Kusama was made possible through a collaboration with MixBytes, a blockchain development team specializing in Substrate and Polkadot ecosystem tooling. MixBytes operates and maintains the validator infrastructure necessary for staking operations, ensuring security and reliability.

Key features of the integration include:

• Seamless staking through Lido’s UI

• On-chain minting of stDOT and stKSM tokens

• Non-custodial design with decentralized validator management

• Automatic reward compounding

These features align with Lido’s broader mission: to make staking more accessible, secure, and liquid across the blockchain ecosystem.

Market Response and Impact

Following the announcement, Lido saw an immediate uptick in community engagement and developer interest. The availability of stDOT and stKSM opens new doors for DeFi protocols on both Polkadot and Kusama, with several platforms already announcing upcoming integrations.

In July alone, Lido's total value locked (TVL) across chains began to rebound from prior lows, with stDOT and stKSM adoption contributing to the momentum. Industry analysts view this as a vote of confidence in liquid staking's resilience and its importance in multichain DeFi infrastructure.

Competition Heats Up in Multichain Staking

Lido’s expansion comes at a time when liquid staking is becoming one of the fastest-growing sectors in DeFi. Competitors like Stafi Protocol, Ankr, and Parallel Finance are also expanding support for multichain staking assets, but Lido’s brand reputation and deep Ethereum roots give it an edge in user trust and liquidity availability.

This expansion is not just a technical integration; it’s a strategic positioning to own the liquid staking narrative across leading chains, from Ethereum and Solana to now Polkadot and Kusama.

Risks and Considerations

As with any staking product, users are advised to understand potential risks:

• Smart contract vulnerabilities

• Slashing penalties from validator misconduct

• Volatility in derivative token pricing (stDOT/stKSM)

However, Lido’s robust audits, decentralization roadmap, and battle-tested Ethereum staking product offer some reassurance to risk-aware investors.

Future Outlook

With this integration, Lido signals its commitment to a chain-agnostic, user-centric staking ecosystem. The move to Polkadot and Kusama may pave the way for future expansions into Avalanche, Cosmos, and beyond, as demand for liquid staking continues to rise.

Expect further product updates, new governance proposals, and deeper integrations across parachains in the coming months.