Lido DAO proposes $20M buyback amid LDO price slide

Lido DAO is considering a significant treasury buyback of its LDO governance token, proposing to spend up to 10,000 stETH (approximately $20 million) to counteract a drastic 95% price decline. The proposal highlights the challenge of thin on-chain liquidity for LDO, necessitating the use of centralized exchanges and market makers for the buyback. This move aims to retire about 8% of the circulating supply and address a perceived disconnect between LDO's market valuation and Lido's strong fundamental performance, including its dominant position in staked ether.