Odaily Planet Daily report: Lido has published a post introducing its LDO automatic buyback mechanism, NEST, which further ties protocol revenue to the value of LDO. Once Lido’s annualized staking revenue exceeds the $40 million benchmark, 50% of the excess will be allocated to NEST to automatically purchase LDO via CoW Swap.
NEST sets an initial daily maximum buyback of $50,000 and a rolling 365-day buyback cap of $10 million, using an accumulative calculation method. Buybacks will automatically pause when protocol revenue is insufficient and the cumulative balance turns negative, resuming only when subsequent revenue surpluses restore the balance.
In the initial phase of the mechanism, the Treasury model will be used: LDO tokens acquired through buybacks will be directly deposited into the DAO treasury and will not be burned. In the future, the DAO may vote to switch to the LP model, at which point half of the funds will be used to purchase LDO, and the other half will be converted to wstETH; both assets will then be deposited together into the Curve liquidity pool, with the LP tokens remaining owned by the DAO.
Lido's backtesting data shows that if this mechanism were applied to the total reward income of approximately $94.18 million from 2024 to 2025, the cumulative buyback amount would be approximately $7.09 million.