Lido’s 1,500 ETH reserve target could slow stETH withdrawals in a crunch
Lido’s Curated Module Committee can now change the 1,500 ETH buffer reserved for validator deposits, but had not opened a motion by Sept. 27. It proposes temporarily setting the reserve to zero, allowing more buffered ETH to serve stETH withdrawal requests, then potentially restoring a 1,500–2,000 ETH reserve after the permissionless 0x02 Community Staking Module launches and operators need deposits. The change matters only when withdrawal and deposit demand compete for limited buffer funds; withdrawals still depend on available ETH and queue conditions. Simulations estimate a 1,500 ETH reserve raises average finalization time from 2.3 to 2.6 days in normal conditions and from 6.3 to 7.9 days under high stress. The target remains 1,500 ETH, and the launch timing and eventual reserve are undecided.
