Lido said the on-chain vote for “NEST: Auto-Buyback” is now live, with the main voting window set from Aug. 5 through Aug. 8 at 22:00.
NEST is an automated, rules-based mechanism intended to create an on-chain link between Lido protocol performance and LDO. Lido said the design and parameters for the mechanism were approved in a Snapshot vote in May.
NEST is proposed to go live in treasury-only mode
According to the Lido governance forum, NEST is now proposed to launch in “Treasury Only Mode” instead of the “LP Mode” that had previously been approved through Snapshot.
Under the proposal, NEST would sell a certain amount of DAO-held stETH through Stonks v2 and CoW Swap in order to purchase LDO.
- In treasury-only mode, 50% of the acquired LDO surplus would be transferred directly to the DAO treasury.
- In LP mode, 50% of the surplus would be deposited into the LDO/wstETH Curve v2 liquidity pool.
The team said additional modeling showed that LP mode has limited applicable scenarios. It also said there is currently no audit report covering the code for the specific Curve version deployed on-chain. On that basis, the team decided to launch with treasury-only mode first, with the option to switch to LP mode later through a single on-chain transaction.
Spending cap and contract status
NEST carries an annual spending cap of $10 million. The related contracts were audited in July and have been deployed to mainnet.
Another Snapshot proposal is also live
Lido Alliance BORG’s proposal to appoint Bryce Howarth as a new director has also gone live on Snapshot. Voting on that proposal will remain open until Aug. 10 at 24:00.