Lido Launches LDO Automatic Buyback Mechanism with Annual Cap of $10 Million

Odaily Planet Daily News Lido has published an article introducing its LDO automatic buyback mechanism, NEST, which further links protocol revenue to the value of LDO. When Lido's annualized staking revenue exceeds the $40 million benchmark, 50% of the excess amount will be allocated to NEST and used to automatically purchase LDO through CoW Swap.

NEST's initial settings include a maximum daily buyback of $50,000 and a rolling 365-day buyback cap of $10 million, calculated on a cumulative basis. When protocol revenue falls short and the cumulative balance turns negative, buybacks will automatically pause until future revenue surpluses restore the balance.

During the initial launch phase, the mechanism operates in Treasury mode, where LDO acquired through buybacks will go directly into the DAO treasury without being burned. In the future, a DAO vote can switch it to LP mode, in which case half of the funds will be used to purchase LDO and the other half will be converted to wstETH, after which both will be injected into the Curve liquidity pool, with LP tokens remaining under DAO ownership.

Lido backtesting data shows that if this mechanism had been applied to the approximately $94.18 million in total reward revenue from 2024 to 2025, the cumulative buyback scale would have been approximately $7.09 million.