Lido’s Curated Module Committee can adjust the deposit reserve target starting September 25, with a range from 0 to 9,600 ETH. It’s still 1,500 ETH for now, but the committee’s plan is: reduce it to 0 before the 0x02 CSM goes live, and then return it to 1,500–2,000 depending on needs.
Why it matters: the deposit reserve and the withdrawal queue share the same buffer pool—if the former takes up more, the latter has less. The results from 360-day data and 500 simulations are: under normal market conditions, the difference between 0 ETH and 1,500 ETH is only 0.3 days, while in high-pressure scenarios the gap is 1.6 days.
My take: this is an incentive trade-off—Lido is betting that future validator demand will be greater than today’s withdrawal speed. For holders of <a>$LDO </a> and stakers of <a>$ETH </a>, that extra day of waiting is real money.
One question: in an extreme market, if stETH takes an extra day and a half to arrive, would you still treat it as near-cash?
Why it matters: the deposit reserve and the withdrawal queue share the same buffer pool—if the former takes up more, the latter has less. The results from 360-day data and 500 simulations are: under normal market conditions, the difference between 0 ETH and 1,500 ETH is only 0.3 days, while in high-pressure scenarios the gap is 1.6 days.
My take: this is an incentive trade-off—Lido is betting that future validator demand will be greater than today’s withdrawal speed. For holders of <a>$LDO </a> and stakers of <a>$ETH </a>, that extra day of waiting is real money.
One question: in an extreme market, if stETH takes an extra day and a half to arrive, would you still treat it as near-cash?