Lido DAO proposes automated LDO buyback mechanism
Lido DAO proposed an automated LDO buyback mechanism using NEST automation to enhance token utility and liquidity.Summary
The Steakhouse Finance Workstream within Lido DAO has put forward a proposal for an automated buyback mechanism for its LDO tokens, designed to increase holder value and improve on-chain liquidity. This system would utilize NEST-powered automation to execute buybacks and establish an LDO/wstETH liquidity pool on a decentralized exchange, with the resulting LP tokens managed by Aragon Agent. The automated framework is conditional, activating only when the price of ETH surpasses $3,000 and annualized DAO revenue exceeds $40 million. This initiative, which mirrors MakerDAO’s Smart Burn Engine, could result in up to $10 million in annual buybacks, strengthening LDO's value during periods of strong ETH performance and revenue growth.
(Source：Crypto Briefing)