Lido’s buybacks won’t fix the bigger problem

Lido has launched a buyback program worth approximately $4 million per year, which coincides with a roadmap aimed at evolving the protocol beyond staking. Despite this initiative, there are concerns about its effectiveness, especially since other BTC treasury companies are seeing their market net asset value (mNAV) drop significantly. As Lido transitions its focus from a single-product staking protocol to a more diverse liquidity platform, investors are skeptical about the buyback's impact, given Lido's current unprofitable status. Concurrently, the broader market is experiencing declines, particularly in big tech, with significant volatility in cryptocurrency prices. The necessity for Lido to innovate beyond simple staking, especially in a challenging market, is evident. However, the current buyback plan may not address the deeper issues facing both Lido and the BTC treasury model, leaving uncertainty about future profitability and market confidence.

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