Lido DAO has proposed buying back its governance token LDO by deploying up to 10,000 stETH, CoinDesk reported on March 30 local time.
The Lido ecosystem operating team said LDO is trading at a historically depressed valuation. It proposed purchases worth about $20 million, based on an ether price of around $2,000.
The key issue in the proposal is the execution path rather than the source of funds. The Lido ecosystem operating team sees large-scale purchases as effectively requiring off-chain execution.
Lido DAO granted authority for the Lido Growth Committee to route trades through centralised exchanges. It left routes open via Binance, OKX, Bybit, Gate and Bitget, and also allowed working with market maker partners to help execute trades on behalf of the Lido Ecosystem Foundation.
The scale of the buyback is not small in terms of price and supply. Based on CoinGecko, LDO hit an all-time low of $0.27 on March 7 and is now trading at around $0.30. It is down more than 95 percent from its 2021 peak of $7.30.
Chi-gyu Hwang
delight@d-today.co.kr