Svmuu According to disclosures on the Lido community forum, the Lido Growth Committee has released a proposal seeking authorization to use up to 10,000 stETH from the Lido DAO treasury to purchase LDO in batches through both on-chain and off-chain channels. The current LDO/ETH ratio is approximately 0.00016, representing a discount of about 63% compared to the two-year median of 0.00043, while the protocol's net revenue has only declined by approximately 20% over the same period.
Regarding the execution mechanism, each batch is capped at 1,000 stETH, with a price ceiling and a maximum slippage tolerance threshold of 3%. A report must be published on the forum upon completion of a batch before the next one can commence. Trading channels include on-chain platforms such as CoW Swap, 1inch, Uniswap, and centralized exchanges like Binance, OKX, and Bybit, with permission granted to delegate execution to market makers. All purchased LDO will be returned to the DAO treasury and will not participate in any governance voting during the holding period.
The proposal outlines key risks, including front-running attacks, smart contract vulnerabilities, market volatility, and the risk of CEX fund freezes. Mitigation measures involve diversifying execution channels, setting strict thresholds, and reserving the right for the DAO to terminate the authorization at any time.