# Proposal Draft for Lido to buy CVX **URL:** \ **Category:** Proposals\ **Created:** [October 20, 2022, 7:38am UTC](https://research.lido.fi/t/proposal-draft-for-lido-to-buy-cvx/3080 "2022-10-20T07:38:55Z")\ **Posts on this page:** 1\ **Showing post:** 12
**Author:** ![carvas](https://dub1.discourse-cdn.com/flex013/user_avatar/research.lido.fi/carvas/32/570_2.png) [@carvas](https://research.lido.fi/u/carvas)\ **Post date:** [November 7, 2022, 12:04pm UTC](https://research.lido.fi/t/proposal-draft-for-lido-to-buy-cvx/3080/12 "2022-11-07T12:04:28Z")
Hey! I’m a reWARDS member as well and wanted to chime in. Thanks for the thorough write-up and thought you put into this. Thanks also for the conversation we’ve had to discuss the topic. These are personal thoughts here: # On Acquiring Governance Power for Liquidity Incentives The main concerns for acquiring other governance tokens for directing liquidity incentives (under the ve tokenomics model) have been laid out in a couple places but imo they’re mostly: 1. There’s **loss in optionality** by doing such a purchase. It commits at least some of the liquidity strategy to one DEX and ecosystem longer term. 2. **Payoff periods** are not that great (at least in current market conditions). 3. Like you also pointed out, **withdrawals** will reduce (though not eliminate) Lido’s reliance on secondary market liquidity as there will be a **primary market** for stETH:ETH. I would expect this to happen much earlier than the EV for payoffs. 4. Above all, in my opinion again, purchasing one of these governance tokens _is above all a **directional long bet** on their price_. More so than the pure [rent vs. own](https://research.lido.fi/t/an-update-on-rewards-v2/2797) discussion or the LDO incentives savings (altough those considerations matter a lot too but that goes without saying). CRV or BAL going up or down in price over the months/years would me more impactful to this being a profitable or unprofitable decision than all the other considerations we make. 5. I think this last one is not as important as the others, because I’m sure we could find a way, but this initiative probably **couldn’t the carried out with just open market buys** and sells (just due to size required and current depths available). (I do think there are pros and reasons for a ‘Liquidity Seeker’ to do such a purchase but you laid out those well. These are just the cons and risks I see. Purposefully not a balanced take) --- _[View the full topic](https://research.lido.fi/t/proposal-draft-for-lido-to-buy-cvx/3080)._