Lido DAO Weighs $20M LDO Buyback as Token Trades at Historic Discount to Ether

• Lido DAO is considering a one-off buyback of up to $20 million in LDO using 10,000 stETH from its treasury.
• The proposal argues LDO is trading at a historically depressed level versus Ether, with the LDO:ETH ratio about 63% below its two-year median.

Lido DAO is weighing a treasury-backed intervention in its own token market, proposing to deploy up to 10,000 stETH, worth roughly $20 million, to buy back LDO after a long stretch of underperformance against Ether. The proposal, submitted by the Lido Ecosystem Operations team, frames the move as a response to what it calls a major price dislocation rather than an ordinary bout of volatility. According to the research, LDO is trading at an LDO:ETH ratio of roughly 0.00016, around 63% below its two-year median of 0.00043 and about 70% below the level that characterized much of the prior two years. Treasury stETH could be turned into phased market support Under the plan, the Lido Growth Committee would be allowed to swap treasury-held stETH for LDO in tranches of 1,000 stETH rather than executing the full amount at once. Each tranche would require separate governance approval, a structure meant to slow the process down and reduce execution risk in thinner market conditions. That design matters. In DeFi, buyback proposals can quickly raise questions about treasury discipline, token support, and whether protocol capital is being used for optics rather than operations. Lido is trying to frame this differently. The argument is that the token has drifted too far from protocol fundamentals, not that the market simply needs a short-term lift. The proposal tests how DAOs value their own tokens The buyback discussion also lands at an awkward moment for governance tokens more broadly. Many protocols still generate fees, hold treasury assets and maintain meaningful onchain activity, yet their governance tokens continue to lag the assets they are supposed to represent. Lido is effectively asking whether treasury capital should be used to close that gap when the market will not do it on its own. For now, the proposal remains under review. But the message behind it is already clear enough. One of DeFi’s largest protocols thinks its token is trading too cheaply relative to Ether, and it is considering using real treasury size to test that view in the open market.