Lido’s 1,500 ETH reserve target could slow stETH withdrawals in a crunch

According to CryptoSlate, Lido's Curated Module Committee gained authority on September 25 to alter a 1,500 ETH deposit reserve target. As of September 27, the configured deposit reserve remained at 1,500 ETH with no motion opened to adjust it. When stETH holders request ETH through Lido's withdrawal queue, the protocol uses buffered ETH, but part of that buffer is protected for new validator deposits. Setting the target to zero could free more buffered ETH for stETH withdrawals during high-demand periods, while maintaining a reserve directs stake toward older modules. The committee's published plan involves temporarily removing the protected slice and potentially restoring a 1,500 to 2,000 ETH target after a new permissionless staking module, 0x02 CSM, launches. Modeling by Lido indicates that under normal conditions, a zero ETH reserve yields a 2.3-day average finalization compared to 2.6 days with a 1,500 ETH reserve. Under a high-stress scenario, the modeled average finalization moves from 6.3 days at zero ETH to 7.9 days at 1,500 ETH. The committee's 5-of-9 multisig can initiate Easy Track motions up to 9,600 ETH, while the DAO retains rights to object, set targets directly, revoke permissions, or remove the factory.