# Liquid Buybacks: NEST execution with LDO/wstETH liquidity **URL:** \ **Category:** Proposals\ **Created:** [November 11, 2025, 9:48am UTC](https://research.lido.fi/t/liquid-buybacks-nest-execution-with-ldo-wsteth-liquidity/10894 "2025-11-11T09:48:17Z")\ **Posts on this page:** 1\ **Showing post:** 109
**Author:** ![katamarinaki](https://dub1.discourse-cdn.com/flex013/user_avatar/research.lido.fi/katamarinaki/32/5721_2.png) [@katamarinaki](https://research.lido.fi/u/katamarinaki)\ **Post date:** [July 15, 2026, 12:58pm UTC](https://research.lido.fi/t/liquid-buybacks-nest-execution-with-ldo-wsteth-liquidity/10894/109 "2026-07-15T12:58:45Z")
Ahead of the NEST onchain vote, expected after Vote #203, this post shares remaining parameters and an intent of a change to the launch plan. ## tl;dr - **The team proposes that the launch mode is treasury-only, not LP.** Snapshot vote approved launching in LP mode, but challenges that surfaced during development put that path in question, so the Aragon vote will propose launching in treasury-only mode, with backed LDO transferred directly to Treasury. - **The Curve LDO/wstETH pool is deployed.** Parameters published below, per the LIP-36 commitment. - **LDO/wstETH pool potential EMA deadlock was mitigated** via NEST implementation, with `poolBootstrapMinTvlUsd` set to **$250,000**. ## Details ### 1. **LDO/wstETH pool deployment** Despite the shifting market, the workgroup kept both directions open until the DAO vote: the pool was deployed as committed in LIP-36. Enabling LP mode later needs no additional deployments. The Curve LDO/wstETH TwoCrypto-NG pool is deployed with following params: | Parameter | Value | | --- | --- | | Pool address | `0xD7f1dA0a28E39dd0dB70E6Acdc2B49846AD22760` | | Name / symbol | [Curve.fi](http://curve.fi/) LDO/wstETH · `LDOwstETH-f` | | Coins | LDO (`0x5A98…1B32`) / wstETH (`0x7f39…2Ca0`) | | `A` | `400000` | | `gamma` | `145000000000000` (0.000145) | | `mid_fee` | `500000` (0.005%) | | `out_fee` | `5000000` (0.05%) | | `fee_gamma` | `230000000000000` (0.00023) | | `allowed_extra_profit` | `2000000000000` | | `adjustment_step` | `146000000000000` | | `ma_time` | `601` (seconds) | | `initial_price` | `8075081795329464726918` (~8,075.08 LDO per wstETH) | | Factory | `0x98EE851a00abeE0d95D08cF4CA2BdCE32aeaAF7F` | | Pool implementation | `0x934791f7F391727db92BFF94cd789c4623d14c52` | | Math implementation | `0x1Fd8Af16DC4BEBd950521308D55d0543b6cDF4A1` | | Views implementation | `0x07CdEBF81977E111B08C126DEFA07818d0045b80` | | Factory admin | `0x97aA696e37659Fb4f0B53824246d802Df40E980A` | | Fee receiver | `0xa2Bcd1a4Efbd04B63cd03f5aFf2561106ebCCE00` | ### 2. LDO/wstETH pool EMA deadlock mitigation The pool starts empty, so its EMA price oracle stays fixed at the deployed `initial_price` until trades happen. NEST normally blocks LP deposits if this EMA diverges too far from the Chainlink-based `OracleRouter` rate. That can deadlock an empty pool (no liquidity → no trades → no EMA updates). To break the loop, the divergence check is disabled until TVL reaches `poolBootstrapMinTvlUsd` ( **$250,000** ). TVL is measured in USD at oracle prices, and deposits are bounded by `minDepositValueUsd`/`maxDepositValueUsd`, so the maximum unguarded exposure during bootstrap is the threshold plus one capped deposit. This only matters in LP mode and is inactive at launch. ### 3. Launch mode: treasury-only NEST sells a limited amount of DAO-owned stETH to acquire LDO (via Stonks v2 / CoW Swap) and then either 1. **Treasury mode:** routes 50% of the surplus in acquired LDO to the treasury 2. **LP mode:** split 50% of surplus into LDO and deposit it into the LDO/wstETH Curve v2 pool. It is a rules-based mechanism for surplus conversion and improving liquidity depth. Snapshot approved and launching in LP mode, but development issues surfaced that make it a poor default for day one. We therefore propose launching NEST in **treasury-only mode** while keeping LP mode ready for later enablement. Enabling LP mode later is a single onchain action: point the executor to the LP-mode Stonks instance via `BuybackExecutor.setStonks` (no redeployments). The issues fall into two buckets: 1. **Current Market** Further modeling has weakened the case for LP mode at launch. The workgroup concluded that pool-deepening liquidity occurs only in a specific scenario: a sustained joint uptrend in LDO and wstETH. Also, the pool is small relative to existing LDO trading venues. With the upside this conditional and this thin, the launch-configuration choice is no longer a settled call for LPs. 2. **Security consideration** There is no audit report covering the exact version of Curve TwoCrypto-NG code deployed onchain. Launching in treasury-only mode keeps DAO funds out of the pool until this is resolved, while still allowing the buyback mechanism to run. For scale, all ~1k bytecode-identical pools that live today hold about $5M in combined TVL, less than NEST’s $10M yearly cap. ### 4. Sizing and guard parameters LIP-36 committed to publishing `minSpendPerCallUSD`, the pool guards, and the order and deposit bounds before the onchain vote: | Parameter | Value | | --- | --- | | `minSpendPerCallUSD` | $1,000 | | `minAllowedOrderAmount` / `maxAllowedOrderAmount` | 1 / 20 stETH | | `poolPriceDivergenceToleranceBps` | `200` (2%) | | `poolBootstrapMinTvlUsd` | $250,000 | | `minDepositValueUsd` / `maxDepositValueUsd` | $1,000 / $50,000 | The pool guards and deposit bounds apply only under LP mode and stay dormant at launch. ## Next steps - The final audit report of the NEST contracts will be published in this thread as soon as possible. - List of onchain vote items will be published to this thread as well. - Onchain vote to launch NEST in treasury-only mode, targeted after the Staking Router v3 release. сс: @cp0x @Kuzmich @batuX @Leuts @Lanski @polar Please, let us know if you have any concerns on launching parameters, including Treasury mode. --- _[View the full topic](https://research.lido.fi/t/liquid-buybacks-nest-execution-with-ldo-wsteth-liquidity/10894)._