Lido Moves $16 Billion in ETH Through New Staking Strategy

Lido, a leading Ethereum staking platform, has initiated a massive reorganization of its staked ETH holdings. The move aims to consolidate large volumes of ETH into fewer validators, taking advantage of the increased capacity introduced by the Pectra upgrade.

The Curated Module v2 is driving this change, which will transfer ETH from old validators limited to 32 ETH to new 0x02 validators capable of maintaining an effective balance of up to 2.048 ETH.

This restructuring also utilizes Lido's balance-based accounting system, enabling the platform to group ETH into fewer validators without requiring withdrawals and re-staking processes.

Initially, Curated Module v2 is expected to distribute approximately 3.882 new validation keys, representing about 124.224 ETH in the new configuration.

The migration process may take at least 117 days, depending on Ethereum's consolidation queue. The complete process could extend until the first quarter of 2027, depending on network capacity.