Lido Consolidates $16 Billion in Staked ETH Amid Validator Upgrade
Lido has initiated the consolidation of approximately $16 billion in staked ETH into larger validators. The move follows the rollout of its Curated Module v2, which enables the migration to new 0x02 validators that can hold up to 2,048 ETH each.
The legacy validators, capped at 32 ETH, will be consolidated into the new validator structure using Ethereum's Pectra upgrade and Lido's balance-based accounting system. Initially, around 3,882 new validator keys with 124,224 ETH will be seeded, followed by the consolidation of approximately 7.82 million ETH.
The migration is expected to reduce operational overhead and lower the number of attestation messages processed by the Ethereum network. However, it may take at least 117 days under ideal conditions due to constraints from Ethereum's consolidation queue.