Lido finally couldn't sit still, seeing their own token price about to drop to the ground, they plan to dig into their reserves to support the price. The officials proposed to use 10,000 stETH from the national treasury, planning a one-time buyback of 20 million USD in LDO.
This operation seems quite reasonable, a typical "self-rescue at a low point." From the on-chain chip perspective, LDO has indeed ground down to historical lows, and the officials chose this timing to intervene, their intention to support the price is evident.
However, as a detective, I have to remind that exchanging highly liquid stETH for their own token essentially reduces the hard currency in the treasury to prop up the token price. In the short term, it can indeed alleviate some selling pressure, and even boost sentiment, but whether it can rise out of the mire still depends on the subsequent growth of TVL. Everyone should keep a close eye on the treasury address to see when this 20 million dollars officially enters the market. #Lido #DAO $LDO
