Lido Proposes 10,000 stETH Buyback at Historically Low LDO/ETH Ratio

The Lido Growth Committee has proposed using up to 10,000 stETH from the DAO's treasury to execute a buyback of its native LDO token. The proposal directly addresses the token's valuation, citing a historically low LDO to ETH exchange ratio of approximately 0.00016. If approved, the buyback would deploy significant capital to create buying pressure on LDO, signaling the DAO's confidence in the token's fundamental value. The goal is to correct the perceived market undervaluation and attract new investment into the Lido ecosystem.

23% Revenue Drop in 2025 Prompts Strategic Shift

This aggressive treasury action follows a challenging financial year for the protocol. Lido's total revenue for 2025 fell 23% to $40.5 million, down from $52.4 million the previous year. The decline was driven by a combination of staking outflows, reduced average staking rewards across the Ethereum network, and intensifying competition. Net staking fee revenue landed at $37.4 million for the period. In response to these headwinds, Lido also reduced its total expenses by 13% to $45.5 million, which included a 15% workforce reduction in August. The protocol's treasury stood at approximately $157.5 million at the end of 2025.

LDO Price Lags Despite New Institutional Product Launch

Lido's token price has struggled to reflect positive ecosystem developments. The LDO token recently dropped approximately 5% from a high of $0.3054, underperforming the broader market even as the protocol achieved a key milestone. Lido, in partnership with Northstake and Balance Trust, launched its V3 stVaults for North American institutional investors, a move designed to attract regulated capital. This modular architecture allows institutions to stake ETH on their own terms without sacrificing liquidity. The disconnect between this fundamental progress and the LDO token's recent price action highlights the challenge the buyback proposal aims to address.