Lido’s self-governing decentralized organization proposes a buyback one time of the governance token in order to keep prices stable during an extended downturn.
You can read more about it here:
- Lido DAO proposes a buyback up to $10,000 stETH (about $20M) to collect LDO in the face of what they call a large valuation gap.
- The token has fallen 95.9% since its peak and is currently trading at a median of 63% against Ether over the last two years.
A governance proposal Lido DAO would receive up to 10,000 StETH (LDO) from DAO’s Treasury.LDO). The allocation, at current prices is worth nearly $20 million.
The DAO framed the action as a reaction to the mispricing. “represents one of the most significant dislocations between LDO’s market price and its underlying protocol fundamentals in the token’s history.”
Once approved, you will receive a confirmation email. proposal The orders would be placed in small batches, each of 1000 stETH up to 10,000 stETH. Limit orders and dollar cost average strategies were planned to reduce volatility.
Each batch will require approval separately before any further action is taken.
Lido DAO’s website also highlights the ratio of LDO and ETH. It says that it is currently at “historically depressed levels,” Trading at a significant discount to Ether with its ratio currently around 63% lower than its median over the past two years.
According to Dune Analytics, the LDO has dropped 95.9% since its high of $7.30.
The protocol’s latest update reported that the amount of money raised by the Foundation would decline 23%, to $40,5 million, in 2025. core performance The company’s performance is strong, despite the decline in revenues.
Lido, for instance, saw its rewards drop by about 20% in the same period. However, costs increased 13%. It’s also seen an increase in its take rate, which has gone from 5% a year ago to 6.11 %.
“That dislocation is not justified by a proportional deterioration in protocol performance,” The DAO stated.
“This article is not financial advice.”
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Source: crypto.news
