Based on BitcoinSistemi, the Lido DAO community has proposed a new liquidity buyback mechanism to reduce the LDO token supply and enhance its utility. The proposal involves structuring the LDO/wstETH pair as a liquidity provider position, similar to Uniswap v2, with ownership managed through the Aragon Agent. This mechanism aims to facilitate automatic buybacks and deepen liquidity, with implementation expected in Q1 2026 if approved. Buybacks will only occur when ETH price exceeds $3,000 and annual revenue surpasses $40 million, with a $10 million cap over 12 months.
Lido DAO Proposes Liquidity Buyback Mechanism to Reduce LDO Supply
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