Lido Committee Weighs Lowering ETH Deposit Reserve Target to Accelerate stETH Withdrawals

Lido's Curated Module Committee has proposed temporarily reducing the protocol's 1,500 ETH deposit reserve target to zero to enhance liquidity for stETH withdrawals. The committee gained operational control over the parameter on September 25, 2026, following Dual Governance Proposal No. 14, enabling its five-of-nine multisig to modify the target between zero and 9,600 ETH via Easy Track. Stress models show that keeping the reserve at 1,500 ETH lengthens high-stress withdrawal finalization times from 6.3 days to 7.9 days. The committee plans to raise the target to 1,500–2,000 ETH once the permissionless Community Staking Module launches in October 2026.