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Lido DAO Weighs Automated LDO Buybacks Using wstETH Liquidity

The rule-based plan would channel staking revenue into LDO purchases via an LDO/wstETH pool under Aragon Agent custody.

Overview

  • The proposal is live on the Lido DAO forum for feedback, with a Snapshot vote flagged as the next step.
  • Executions would use staking-derived inflows to buy LDO and pair it with wstETH in a Uniswap v2-style LP managed through NEST and EasyTrack.
  • Activation requires ETH above $3,000 and annual revenue over $40 million, with 50% of inflows above that directed to buybacks.
  • Operations are capped at $10 million per rolling year with price impact limited to about 2% and up to 14 clips of 350,000 LDO each.
  • If approved, implementation is targeted for Q1 2026, while recent coverage noted a near-term LDO price drop of about 9% and estimates of roughly $4 million in annual repurchases under current metrics.