Lido's next phase. - A $4m/year buyback plan at current run-rates - A roadmap that goes beyond staking What's inside? 🧠 --------- @LidoFinance DAO proposed to use the surplus staking revenue to acquire $LDO under some conditions (not final) - $ETH > $3,000 - Annualized protocol revenue >$40m - 50% of staking revenue above $40m is used - Cap at $10m on a rolling year basis This model is also anti-cyclical. In bull markets or high revenue periods, they'll buy more. In bear markets, buybacks will be slow or stopped. At today’s run rate, this translates to roughly $4m/year in buybacks. --------- At first glance, the proposal looks disadvantaged. - Aave runs a $50m per year buyback - Uniswap's fee switch would have burned ~$150m YTD, had the UNIfication been live. Additionally, Lido would only buy back $LDO when the market is strong, meaning they'd buy at high prices, while offering no counter-cyclical during bear markets, when the token is likely down. --------- However, Lido has a bigger plan to become a multi-product platform built around $stETH. - Lido's Earn offers one-click access to blue-chip ETH yield strategies stRATEGY is Lido's newest Earn vault run by @mellowprotocol Core Vaults for ETH, WETH, and stETH DeFi yields (up to 42.1% APY now) - Lido V3 with stVaults will allow institutional staking and customized strategies (explain below) --------- Staking and liquid staking protocols are expanding beyond pure staking, as staking itself is a low-margin business. - @jito_sol with its block-based auction markets - @ether_fi seems to find PMF with EtherFi's Cash, with a growing share in overall revenue Lido is building a financial rails on top of $stETH. If Ethereum wins, Lido will win.