Lido DAO proposes $20 million LDO buyback as token trades at 70% discount to two-year median
Lido DAO proposed buying back $20 million worth of LDO using stETH due to its historically depressed valuation.Summary
Lido DAO has proposed spending up to 10,000 stETH, valued at roughly $20 million, to buy back its governance token, LDO, citing a historically depressed valuation where the token trades at a 70% discount to its two-year median ratio against ETH, despite strong protocol fundamentals.
The proposal highlights the severe lack of on-chain liquidity for LDO, which has only about $90,000 in depth, forcing the DAO to route the large buyback through centralized exchanges like Binance and OKX. LDO has plummeted over 95% from its 2021 peak, currently trading near $0.30.
The buyback, which could cover about 8% of the circulating supply, is intended to address this significant dislocation between the token's price and the protocol's performance, though the article notes this situation reflects a broader market repricing of DeFi governance tokens that control fee switches but distribute no yield.
(Source：CoinDesk)