Strong +1 on this proposal.
1. Clear valuation disconnect, hence asymmetric upside
At a ~60-70% discount to the 2-year median LDO:ETH ratio, the market is pricing in a level of structural deterioration that isn’t reflected in Lido’s fundamentals at all. The protocol continues to dominate in market share in liquid staking and generates consistent fee revenue with a proven take rate (which even grew by >20% from 5% to >6% over time).
We’re effectively looking at a scenario where:
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Cash-flow relevance (fees) is intact
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Market leadership is intact
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Systemic importance to Ethereum staking is intact, i.e. maintaining decentralisation at the staking layer
Yet the governance token is trading as if the opposite were true. It fell off from CMC100, which is where it belongs and needs to be brought back to.
I strongly support the notion of this proposal that well establishes that that gap between structural mispricing but unchanged fundamentals is the opportunity.
Deploying 10,000 stETH into LDO at these levels is not just opportunistic—it is accretive if you believe in mean reversion toward LDO:ETH parity over time—which if not the Lido DAO itself believes, who else should.
A full mean reversion to the 2-year median would be a ~3x (200% ROI) from current LDO and ETH prices.
2. Reflexivity & signaling which breaks the bearish overhang
Crypto markets are reflexive.
A DAO allocating 10,000 stETH to acquire its own token at multi-year relative and absolute lows sends a very strong signal:
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Internal conviction is high
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Treasury is willing to underwrite that conviction
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LDO is not just governance. It’s a strategic reserve asset
This can catalyze a re-pricing loop:
- DAO buys → market interprets signal → external demand follows → LDO:ETH ratio compresses upward
In other words, this can be in itself, or a serious part of an ongoing effort, for a narrative reset that can help re-anchor expectations closer to fundamentals.
Doing this on the back of the upcoming LDO buyback program which is going to go live in q2 / q3 makes this even better timing.
3. Execution
The proposed 1,000 stETH tranche execution via Easy Track is the right direction:
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Minimizes slippage and adverse price impact
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Preserves flexibility if market conditions change
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Maintains ongoing DAO oversight rather than a one-shot deployment