Lido DAO to Automate LDO Buybacks via LDO/wstETH Liquidity Pool Aimed for Q1 2026 Rollout

In a new workstream, Lido DAO community proposes deploying a LDO/wstETH liquidity position in a Uniswap v2–style pool to enable automatic buybacks and enhanced liquidity management.

The LP would be custodied by an Aragon Agent, with governance-led approval required, and the plan targets Q1 2026 for execution should the proposal pass.

The mechanism would trigger buybacks when the ETH price is elevated and the protocol’s annualized revenue clears a predefined hurdle, expanding on-chain depth and shrinking the circulating LDO supply.

By improving capital efficiency and reinforcing the token’s long-term value, the proposal aligns stakeholder incentives and could influence future Lido DAO governance and market dynamics, subject to ongoing risk assessment.