Lido Considers Emergency Liquidity Backstop for LDO on Centralized Exchanges

Lido DAO is considering an emergency liquidity backstop for its LDO token on centralized exchanges. The proposal would allow up to $1.5 million worth of LDO, capped at 7.5 million tokens, to be made available as recallable market-making inventory.

The funds would only be deployed if Lido's Growth Committee determines that liquidity on important exchanges has become insufficient or is likely to become so. In this case, the assets remain in the DAO treasury until then.

The proposal aims to prevent a scenario where thin books make the token less attractive for major exchanges to maintain listings, ultimately leading to further fragmentation and reduced fiat access.