TechFlow News: On March 27, according to disclosures on the Lido community forum, the Lido Growth Committee published a proposal to authorize the use of up to 10,000 stETH from the Lido DAO treasury (valued at approximately its current market price) to purchase LDO tokens in tranches—both on-chain and off-chain—in order to capitalize on the current historically low LDO/ETH exchange rate.
Regarding the proposal’s background, the current LDO/ETH ratio stands at approximately 0.00016—about 63% below its two-year median of 0.00043—while protocol net revenue has declined by only roughly 20% over the same period, indicating a clear divergence between fundamentals and price action.
On execution mechanics: each tranche is capped at 1,000 stETH and subject to both a price ceiling and a maximum slippage tolerance of 3%. A public report must be posted on the forum upon completion of each tranche before the next may commence. Execution channels include on-chain venues (CoW Swap, 1inch, Uniswap) and centralized exchanges (e.g., Binance, OKX, Bybit), and delegated execution by market makers is permitted. All purchased LDO tokens will be returned to the DAO treasury and may not be used for governance voting during the holding period.
On risk considerations: the proposal identifies primary risks—including frontrunning attacks, smart contract vulnerabilities, market volatility, and CEX fund freezes—and mitigates them via diversified execution channels, strict parameter thresholds, and the DAO’s reserved right to terminate authorization at any time.
