Lido DAO is considering an emergency liquidity authorization that would reserve up to 7.5 million LDO, worth about $1.5 million, along with 480,000 USDC as recallable market-making inventory. The proposal says the reserve would be deployed only if liquidity on centralized exchanges deteriorates sharply, while the assets would remain in the DAO treasury until the Lido Growth Committee decides intervention is needed. The stated goal is to reduce the risk of delisting if LDO trading volume declines. The plan has not gone unquestioned inside the DAO. Some members have challenged the need to use treasury funds to pay market makers and argued that improving the token’s organic utility should come first. Techub carried the item and cited Bitcoinist as the source.
Lido DAO is reviewing a proposal for an emergency liquidity authorization that would earmark up to 7.5 million LDO, worth about $1.5 million, and 480,000 USDC as recallable inventory for market making.
Under the proposal, the reserve would be used only if liquidity on centralized exchanges worsens materially. Until then, the funds would stay in the DAO treasury, and the Lido Growth Committee would decide whether intervention is necessary.
The proposal says the measure is intended to guard against delisting risk tied to a drop in LDO trading volume. Some DAO members have pushed back, questioning whether treasury funds should be used to pay market makers and saying priority should instead go to strengthening the token’s organic utility. Techub reported the update, citing Bitcoinist.
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