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Lido DAO Weighs Automated LDO Buybacks Using wstETH Liquidity Pools

A Snapshot vote remains pending before a potential Q1 2026 rollout.

Overview

  • The forum proposal would pair LDO with wstETH in Uniswap v2-style LP positions held by the Aragon Agent to deepen liquidity and remove tokens from circulation.
  • Buybacks would trigger only when ETH trades above $3,000 and Lido’s annualized revenue exceeds $40 million, allocating 50% of inflows above that threshold.
  • Executions are limited to up to 14 runs per year in 350,000 LDO clips with a targeted market impact under 2% and a $10 million rolling 12‑month cap.
  • The DAO treasury would seed the initial position, with NEST contracts and EasyTrack handling executions that convert wstETH to LDO and return it to the LP under DAO custody.
  • The design emphasizes simplicity inspired by MakerDAO’s Smart Burn Engine, and current metrics suggest roughly $4 million in annual distributions if the parameters hold.