DeFi tokens have sharply declined due to a bad debt event affecting multiple protocols, with AAVE and LayerZero both dropping 22%. Contagion fears impacted even those without direct exposure, like Ethena and Compound.

Lido's LDO buyback program prompted a significant purchase of 4.5 million LDO tokens by a whale for $1.86 million, alongside 10,000 AAVE tokens for $1.15 million, sourced from Wintermute and FalconX, respectively.

Lido's governance token LDO has gained 30% in 30 days, driven by a $20 million buyback program, while major DeFi competitors declined. Despite the rally, LDO remains down 94% from its peak.

Lido's growth committee multisig wallet received 4.82 million LDO for buybacks, totaling approximately $1.81 million, with funds from a major CEX and Portofino. A buyback proposal was approved on April 13, and execution parameters were shared on April 14.

After the Lido DAO LDO token price hit a historic low, it once again began discussing a token buyback plan, proposing to use up to $20 million for repurchases to ease concerns about the governance token’s value. The proposal received community support, reflecting members’ desire to stabilize the market and boost confidence, but the long-term outlook for the LDO price still depends on the governance model and the recovery of Ethereum staking participation.

Lido DAO has proposed a governance plan to conduct phased repurchases of LDO tokens in response to market downturns, with a maximum allocation of 10,000 stETH, approximately worth 20 million USD. The proposal indicates that the LDO price has significantly diverged from the protocol's fundamentals; the repurchase aims to provide short-term price support, demonstrate management capability, and reassure investors. Stakeholders are advised to monitor the progress of the repurchase and market reactions.

The Lido ecosystem operations team proposed to authorize the use of up to 10,000 stETH to purchase LDO, as the LDO/ETH exchange rate is sluggish. The plan is to execute this in batches through Easy Track, ensuring that the transaction slippage is kept within 3%. The acquired LDO will be returned to the treasury.

The Lido ecosystem operations team has proposed to use up to 10,000 stETH from the treasury to purchase LDO, as its exchange rate is below the historical median of 63%. The plan will be executed in batches to control slippage within 3%, and all acquired LDO will be returned to the treasury.

The Lido Growth Committee proposed to authorize the use of up to 10,000 stETH to purchase LDO, taking advantage of the current historically low LDO/ETH ratio. The proposal also outlines the execution mechanisms and risk management plans, aimed at enhancing yields and protecting DAO assets.