According to Odaily Odaily, citing the Lido community forum, the Lido Growth Committee has released a proposal to authorize the use of up to 10,000 stETH from the Lido DAO treasury to purchase LDO in batches through on-exchange and off-exchange channels. Currently, the LDO/ETH ratio is approximately 0.00016, a discount of about 63% from the two-year median of 0.00043, while the protocol's net return has only decreased by about 20% over the same period.
Regarding the execution mechanism, each batch has a maximum limit of 1000 stETH, with a price cap and a maximum slippage tolerance threshold of 3%. After execution, a report must be published on the forum before the next batch can be initiated. Trading channels include on-chain CoW Swap, 1inch, Uniswap, and centralized exchanges such as Binance, OKX, and Bybit, and market makers are allowed to be delegated for execution. All purchased LDO will be returned to the DAO treasury, and holders are prohibited from participating in any governance voting during the holding period.
The proposal identifies key risks including front-running attacks, smart contract vulnerabilities, market volatility, and CEX fund freezes, and mitigates these risks through mechanisms such as decentralized execution channels, setting strict thresholds, and retaining the DAO's ability to terminate authorization at any time.
