Lido DAO Proposes Automated LDO Buyback Mechanism
- Lido DAO’s Steakhouse Finance Workstream has proposed an automated buyback mechanism for its LDO tokens.
- The buyback system is powered by NEST automation and uses on-chain liquidity through wstETH pairs.
- It involves creating a Uniswap v2-style liquidity pool with LDO/wstETH, managed by Aragon Agent.
- The mechanism activates when ETH exceeds $3,000 and annualized DAO revenue surpasses $40 million.
- Up to $10 million in annual buybacks are projected, enhancing LDO value during strong ETH performance and revenue growth.
Lido DAO has introduced a proposal for an automated buyback of its LDO tokens, aiming to enhance holder value through systematic repurchases facilitated by NEST-powered automation. The plan includes leveraging on-chain liquidity via wstETH pairs and mirrors MakerDAO’s Smart Burn Engine strategy.
Source (3.2)https://cryptobriefing.com/lido-dao-ldo-token-buyback-mechanism/?rand=59535
