Lido dey propose big LDO buyback reach 10,000 stETH with discount
Lido don propose say dem go do LDO buyback to close di perceived valuation gap between am and im Ethereum staking fundamentals. Di plan dey target up to 10,000 stETH (around $20M at di current ETH price) to repurchase LDO, say LDO dey trade for historically low level.
Di proposal talk say LDO-to-ETH valuation dey about 70% lower than levels wey dey for most of di past two years, and LDO don fall roughly 95% from im 2021 peak ($7.30). E still mention protocol improvements: rewards don drop about 20%, costs don improve ~13%, and effective commission rise to 6.11% from 5%—but di token price never reflect those gains.
If dem approve am, di LDO buyback fit retire about 8% of circulating supply (up to ~65M LDO). How dem plan am na to limit market impact: buys go dey done in 1,000 stETH tranches routed through major centralized exchanges and market makers (Binance, OKX, Bybit, Gate, Bitget), each tranche followed by three-day objection window. Dem put strict slippage cap of 3% versus reference price to avoid excessive distortion.
Traders suppose note di liquidity constraint wey di proposal highlight: on-chain LDO depth within ±2% na roughly $90k, so scaling go likely depend on exchange routing and careful tranche execution. Di broader message na governance-token valuation debate—when fundamentals improve but liquidity thin and pricing fit lag.
Bullish
Dis LDO buyback proposal fit be short-term positive catalyst for LDO because e dey show say management get belief and dem wan close reported discount compared to protocol performance. Di planned scale (up to ~10,000 stETH, ~8% of circulating supply) big enough to matter, and di strict tranche plus 3% slippage cap mean dem go structure execution to reduce chaos instead of create heavy sell pressure.
For short term, approval signals and market reaction to di “discount closing” story fit support LDO sentiment and liquidity. For long term, if investors believe token pricing go track fundamentals better, e fit improve confidence for governance-token valuation.
But di proposal still show say on-chain liquidity weak (limited depth within ±2%), so price impact fit depend heavily on exchange routing and execution mechanics. Dis uncertainty cap how bullish di move fit be, but di directional impact on LDO itself still positive.