Lido DAO Considers Contingent $7.5 Million LDO Market-Making Plan

Lido DAO is weighing a proposal to set up a contingent marketmaking mandate for LDO, the governance token used by the liquid staking protocol. The plan would authorize up to 7.5 million LDO, valued at about $1.5 million, plus as much as 480,000 USDC for retainers and related expenses. The proposal is designed as a backstop rather than an immediate deployment of funds. According to the article, the assets would remain in the DAO treasury unless Lido’s Growth Committee decides that trading liquidity on major centralized exchanges has fallen to a level that justifies intervention. Supporters say the measure is meant to help preserve twosided liquidity and reduce the risk that thinning trading volumes could lead to fewer exchange listings. Critics within the DAO, however, have raised questions about whether treasury funds are best spent on professional market makers instead of efforts to build more organic utility for the token.