Lido’s buybacks won’t fix the bigger problem

Lido has introduced a $4 million annual buyback plan alongside a roadmap to diversify beyond staking. Despite this initiative, concerns about sustainable value creation are growing as prominent BTC treasuries struggle, with Strategy (formerly MicroStrategy) trading below its market net asset value (mNAV) for the first time since early 2024. Other BTC treasury names are experiencing even worse mNAV multiples, prompting skepticism about their long-term viability. Lido's buyback mechanism ties to the ETH price and staking revenue, but it may lead to accumulation when prices are high without providing support during market downturns. Lido's future plans include evolving from a single-product staking organization to a broader liquidity platform, albeit amidst doubts as it reported a Q3 loss of $200,000. The overall sentiment suggests the buyback initiative may be too limited to address Lido’s fundamental profitability issues effectively, leaving questions around its impact in the face of ongoing sector challenges.

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