Until withdrawals are enabled (and this is quite a time away), we’ll need to maintain significant liquidity for stETH holders to be able to exit their positions. That’s what unlocks the growth, and that’s what affects stETH usability on money markets & across wider DeFi ecosystem. Once the withdrawals are here, Lido — most likely — won’t need that much liquidity on the pools, so would be able to change the approach to rewards completely. Before that — we’ll be optimising for lower LDO spend & figuring out what the focus should be. I’ve touched on that on another forum post.
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