Chainfeeds Guide:
At the macro level, the SEC has clearly stated that liquid staking does not involve securities; at the micro level, the LDO buyback plan is finally being put on the table.
Article Source:
https://www.odaily.news/zh-CN/post/5205609
Article Author:
Odaily
Perspective:
Odaily: The leading liquid staking protocol Lido (LDO) has recently shown a significant price surge. OKX market data shows that as of 10:00 on August 11, LDO was trading at 1.52 USDT, with a 24-hour increase of 14.21% and a weekly gain of up to 64.5%. As the largest liquid staking protocol in the Ethereum ecosystem, Lido has long been at the top of the total value locked (TVL) ranking, and although recently surpassed by Aave, which has rapidly grown through the USDe asset circular lending model, it still holds significant influence in the Ethereum ecosystem. The LDO price increase can be divided into macro and micro aspects: At the macro level, the U.S. Securities and Exchange Commission (SEC) released the "Statement on Certain Liquid Staking Activities" on August 6, clearly stating that liquid staking activities related to protocol staking do not constitute securities issuance unless the deposited assets are part of or bound by an investment contract. This means participants do not need to register with or apply for exemption from the SEC, effectively loosening regulatory constraints. In June 2024, the SEC had identified Lido and Rocket Pool as securities, causing LDO to drop over 10% that day and remain depressed for an extended period. The new SEC policy direction helps to dispel regulatory clouds. Meanwhile, BlackRock has applied to introduce a staking mechanism in its spot Ethereum ETF, which, although still pending approval, has a higher probability of approval under the new attitude. As the market leader with nearly 25% of Ethereum staking market share, Lido is poised to benefit from the advancement of staking ETFs. Beyond macro benefits, the immediate factor driving LDO's price is the proposed buyback plan. On August 7, Lido community member Kuzmich submitted a draft "LDO Buyback Plan" in the governance forum, pointing out that Lido's treasury holds about $145 million in liquid assets (17 million USDC, 11.9 million USDT, 12.2 million Dai, 28,640 stETH), but these funds are not generating returns. The draft proposes dynamically executing buybacks based on treasury balance to improve fund utilization, boost price, and rebuild market confidence. The initial proposal is: when treasury liquid assets exceed $85 million, 70% will be used for buybacks and 30% kept for operations; when assets are between $50-85 million, the ratio changes to 50%/50%; below $50 million, buybacks will pause until the threshold is restored. The plan is to collect feedback from August 7-14, discuss in the token holder call on August 14, revise from August 15-24, and submit to Snapshot voting on August 25. While some members question whether the buyback is just short-term stimulation, most opposition focuses on details like whether tokens will be burned and the execution method's lack of clarity. Considering the draft is still in early stages and LDO has recently shown rare strength, there is optimistic expectation that the proposal may receive significant community support after modifications. LDO has long been viewed as an ETH ecosystem Beta asset, but its long-term performance has been poor. At a time when AAVE has surged to $300 due to buyback trends, ENA has skyrocketed with its business flywheel and treasury plan, and PENDLE has opened new narrative spaces with Boros, LDO, despite expectations of a staking ETF, has failed to form a clear price driver. This weakness made it seem left behind in market enthusiasm. Now, under the dual stimulation of macro policy relaxation and micro buyback expectations, LDO's price shows signs of a trend reversal. While it's too early to determine if this is the beginning of value discovery, it at least shows signs of market confidence recovering. Lido's market share in Ethereum staking, the protocol's accumulated financial strength, and its flexible governance adjustment capabilities provide a foundation for attracting funds in a new cycle. If the staking ETF is approved and the buyback plan is implemented, LDO might see a more definitive upward logic in the next stage. However, whether it can sustain the rise depends on the market's recognition of its fundamental improvements and the actual effect of the proposal's execution.
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