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Lido keeps 1,500 ETH deposit reserve, delaying stETH withdrawals

Lido’s deposit reserve was still set at 1,500 ETH as of Sept. 27, and a committee had not yet opened a motion to change the priority rules.

Reported · Written up by our desk · Market Structure

Lido’s Curated Module Committee gained the power to change how ETH in the protocol buffer is allocated between new validator deposits and stETH withdrawal requests, after it was granted that authority on Sept. 25, according to CryptoSlate.

As of Sept. 27, the configured deposit reserve remained at 1,500 ETH, and the committee had not yet opened a motion to adjust it, the outlet said. The article notes that when ETH is earmarked for deposits as deposits and withdrawals compete, less is immediately available to the withdrawal queue, which can affect how quickly stETH holders receive ETH.

CryptoSlate reports that Lido’s contract documentation splits buffered ETH into three portions allocated in order, with a deposits reserve first, then a reserve for unfinalized stETH requests, and any remaining ETH treated as unreserved. The outlet adds that Lido’s first published plan would temporarily remove the protected slice, then consider restoring it for a new staking module, with the timing impact depending on buffer inflows, the number of withdrawals awaiting finalization, and whether validators are ready to accept deposits.

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