Lido DAO Proposes Automated Buyback and Liquidity Management Strategy

According to BlockBeats, the Lido DAO community has introduced a new workflow proposal aimed at automating buybacks and managing liquidity through a Uniswap v2-style liquidity pool. The proposal suggests deploying an LDO/wstETH position, which would be held by an Aragon Agent. If approved, the implementation is expected in the first quarter of 2026. The proposed mechanism is designed to trigger buybacks when the price of ETH is high and the protocol's annualized revenue exceeds a set threshold. This strategy aims to enhance on-chain depth and reduce the circulating supply of LDO, thereby improving capital efficiency and increasing the long-term value of the token.