Lido’s buybacks won’t fix the bigger problem

Lido has initiated a buyback plan worth approximately $4 million per year alongside a roadmap to diversify its services beyond staking. This comes as concerns arise over the declining market value of treasury companies like Strategy, which is trading below an mNAV of 1 for the first time since early 2024, leading to skepticism about the sustainability of this model. The buybacks are designed to purchase LDO tokens when Ethereum prices are high, which critics argue could limit effectiveness during downturns. Additionally, Lido aims to evolve from a single-product staking business to a comprehensive liquidity platform over the next few years. While this plan is seen as a necessary step, underlying issues remain, such as Lido's current unprofitability. Overall, the buyback program may not address the core challenges faced by Lido in a rapidly changing market.

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