LDO Liquidity Deterioration Triggers DAO Proposal for Up to $1.5M Budget

Lido DAO has proposed a conditional market-making plan utilizing up to $1.5 million worth of LDO (approximately 20.4 billion KRW) and 480,000 USDC (approximately 652.8 billion KRW) to address deteriorating liquidity for LDO on centralized exchanges (CEXs) and potential delisting risks.

The proposal, submitted to the Lido governance forum, outlines a plan to allocate up to 7.5 million LDO as recoverable market-making inventory, with a maximum of 480,000 USDC (approximately 652.8 billion KRW) designated for fixed service fees and related costs over a 12-month period. The plan can only be activated if the Growth Committee determines that LDO liquidity on CEXs is insufficient or likely to become insufficient.

According to the proposal, LDO's average daily trading volume over the past 90 days was approximately $34 million (about 46.2 billion KRW), down from $43.8 million (about 59.6 billion KRW) in the previous 90-day period and $95.4 million (about 129.7 billion KRW) during the same period in 2025.

The authority to implement this plan expires if not activated within two years.